Wednesday, April 16, 2008

I don't understand economics

There's been a lot of economics on the radio recently:
  1. Fear of house prices falling
  2. The pound dropping against the Euro
  3. Shortage of mortgages
Now I remember a few months ago, it was:
  1. Fear of house price rises triggering inflation
  2. A high pound inhibiting exports and flooding us with cheap imports
  3. Economic growth being fuelled by ever higher levels of debt.
Some contradiction there?


St said...

Just as rain is good news for umbrella manufacturers economic turbulence is good news for economists.

Mike Peatman said...

Yes. Nicely put.

There's also the paradox of a credit crunch following worried that consumer credit is too easy.