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29

Jul

United States sector balances over five decades

Analysing the US sector balances shows not only a huge budget deficit but unprecedented and equally problematic corporate and overseas surpluses. The surpluses or deficits of a…

  • Authors: Anthony Lord, Peter Kenway
  • Category: Economic Policy

30

Jun

The ‘balance-sheet recession’ hypothesis and the UK

Does the balance sheet recession experienced by Japan after its property bubble account for the rising UK corporate savings since the tech bubble burst in 2001?  At least…

  • Author: Teodor Todorov
  • Category: Economic Policy

23

Jun

The relationship between the corporate surplus and NFC domestic investment and net FDI in the UK

Does the rise in corporate savings since 2001 reflect the fact that UK companies have been creating and acquiring assets abroad rather than creating them at home?  Whereas the…

  • Author: Teodor Todorov
  • Category: Economic Policy

19

Apr

How good is the OBR's forecast of the corporate surplus and what does it tell us?

If the public sector deficit is to come down, the other sectors’ surpluses must come down too, especially that of the corporate sector which is the biggest of them.  This is indeed…

  • Author: Peter Kenway
  • Category: Economic Policy

12

Apr

Some possible explanations for the corporate sector surplus

What explanations have been offered for the UK’s large and long-standing corporate sector surplus, which seems at odds with the conventional economic view of corporations as…

  • Author: Dominic Muir
  • Category: Economic Policy

29

Mar

What accounts for the growth of the corporate sector surplus?

As with the savings of individuals or households, the UK corporate sector surplus can be higher either because income is higher or because spending and other outgoings are lower. …

  • Author: Peter Kenway
  • Category: Economic Policy

04

Feb

A chronic corporate sector surplus

The corporate sector surplus did not just emerge on the back of the recession but has instead been ever present since 2002.  While a temporary surplus is quite normal, a persistent…

  • Author: Peter Kenway
  • Category: Economic Policy

26

Jan

The long term view of economic growth

On the day when the commentators draw extreme conclusions from one quarter of highly provisional GDP data, we look back over 100 quarters to get a sense of the bigger…

  • Author: Peter Kenway
  • Category: Economic Policy

25

Jan

More than the deficit

At more than 10 per cent of GDP, it is not surprising that all political parties accept that the UK’s public sector deficit must be substantially reduced. Based on what a household…

  • Author: Peter Kenway
  • Category: Economic Policy

19

May

Shrinking the state?

 All major political parties now accept that the public sector deficit must be cut and the growth in the debt brought under control. With total public spending as a share of GDP…

  • Author: Peter Kenway
  • Category: Economic Policy

30

Mar

Cutting government borrowing: damned if you do and damned if you don't?

At first glance, the dispute in February among economists about how and when to cut the level of government borrowing, waged through letters to newspapers, seems to have had no…

  • Author: Peter Kenway
  • Category: Economic Policy