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The graph below – courtesy of the International Herald Tribune – does not look like a dagger – but a dagger is what it is when pointed at a vast bubble of credit. Unfortunately there are central banks like the Bank of England and the Bank of Hungary that have not blunted their daggers, or indeed are still sharpening the dagger.
24th October, 2008 The NS has published a short piece this week: “Economists simply would not accept that their model could fail“. An introductory sentence is not mine: “Who would have predicted..that prudent Gordon Brown (would) breach the EU cap on government spending?” Am writing to the NS to ask for a correction to be published.
I am dictating this piece down the phone from Budapest in Hungary where I have just arrived to deliver a lecture to the Ybl Club. My hosts were in a state of shock on arrival because the central bank of Hungary has just raised interest rates from 8.5% to 11.5%…  9th October, 2008. Central banks’ obsession with inflation is stopping them from tackling a far more pressing threat. |
In the September 2003 edition of openDemocracy I wrote: 
Click here to read the full story in openDemocracy BOOKS:
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