Support from unlikely places today.
Lombard Street Research are an independent macroeconomic forecasting company.
As they say:
Lombard Street Research was founded in 1989 by Tim Congdon CBE and quickly established its reputation as a leading provider of independent macroeconomic research.
Our consistent aim has been to provide accurate economic forecasts in order to improve the investment thinking and strategic decisions of financial institutions, banks and corporations worldwide.
The key foundation of our research is monetary economics. Fundamental analysis of trends in money and credit, banking systems and flows-of-funds provide unique insights into economic developments and into likely movements of financial asset prices.
We also employ proprietary leading indicators to help generate forecasts for economic growth in all of the major economies of the world.
The key point here is that these guys are monetarists.
So, I was delighted when this landed in my inbox:
Savaged by a dead S&P/sheep
WE SUGGEST: Yields on Treasuries, Bunds and Gilts are attractive
SUMMARY: US/UK deficits are the only way of stopping global economic collapse until savings-glut countries cut their excess saving. For the foreseeable future, this is unlikely to happen. If and when it does, the Anglo-Saxons should and will cut their deficits.
I’ll say that again, ‘US/UK deficits are the only way of stopping global economic collapse’.
So, there you go… We now both Keynesians and Monetarists arguing to run a deficit. Who exactly are the Tories being advised by?