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?

2 comments:

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.