Latest News Update

What you need to know about deflation, but were afraid to ask

If you are struggling to put into words just why falling prices is such a bad thing, this week's Economist (see Feeling Down, leaders) explains why this deflationary spiral is such a hugely dangerous problem, and suggests some ways in which the authorities might combat it ...

and on related matters ... negative interest rates

The Economist (Free Exchange, Finance and Economics) also examines the arrival in Europe of negative interest rates, a direct result of poor growth and the deflationary environment and a counter-intuitive scenario if ever there was one. It's the banks that feel the pain.

FCA Inquiry into Commercial and Investment Banking

All the UK papers carry the announcement of an investigation into possible conflicts of interest and anti-competitive practices throughout the industry, but the Financial Times (Banking Probe, p.3) covers it particularly comprehensively, including the disbelieving reactions of put-upon bankers.