Vince Cable: Economics

Vince Cable is British Liberal Democrat politician. Explore interesting quotes on economics.
Vince Cable: 32   quotes 0   likes

“The Robert Mugabe school of economics”

Context: The big, looming, monetary issue is "quantitative easing": that is, printing money. What happens is that the government borrows from the Bank of England, not from the markets. It expands the money supply to keep the economy going and also to counter deflation without simultaneously increasing government debt. The attractions are obvious, as are the dangers. The Robert Mugabe school of economics provides a salutary warning about uncontrolled monetary expansion in generating hyper-inflation. The road to Harare is not as long as we might hope. Monetary easing may prove to be necessary but will have to be managed with great skill and care: Too little easing and the crisis drags on – as in Japan. If there is too much, the authorities face the messy task of mopping-up liquidity by issuing bonds which add to the burden of borrowing or else we lurch back from deflation to inflation. So interest rates may soon become yesterday's story.

“Growing inequality is linked to poor economic performance, greater instability, more social tension, insecurity and unhappiness.”

Vince Cable warns inherited wealth is fuelling inequality https://www.bbc.co.uk/news/uk-politics-41168093, BBC News, 6 September 2017
2017