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Post by Deleted on Jan 15, 2024 13:14:21 GMT
Yet that is exactly what we do with interest rates. So again it is not the lack of so called control that is your real issue, just your dislike of an income levy being used instead of interest rate rises. No we don't - it is the elected government that gives the BoE the mandate to keep inflation at 2%. The only tool the BoE has that can affect the inflation rate is interest rates - but they elected government could remove that mandate at any time. The same could be done with the alternative of an income levy. I know interest rates are the only tool they have now. That is what this is all about. I am suggesting they be given a better one. |
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Post by Pacifico on Jan 15, 2024 14:26:26 GMT
No we don't - it is the elected government that gives the BoE the mandate to keep inflation at 2%. The only tool the BoE has that can affect the inflation rate is interest rates - but they elected government could remove that mandate at any time. The same could be done with the alternative of an income levy. I know interest rates are the only tool they have now. That is what this is all about. I am suggesting they be given a better one. Yes - but that means that an unelected group are making arbitrary changes to Tax rates that have no democratic oversight. I also wonder how practical that suggestion is given the number of changes that may be needed across a year - if the tax rate changed 6 times I would struggle with my Self Assessment Tax Form let alone businesses employing large amounts of workers. |
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Post by Equivocal on Jan 15, 2024 14:35:42 GMT
That does assume tax levies replace interest rates entirely. For myself can I say that was never my intention, I felt it was a way of making the tool less blunt. Oh and POI Interest rates in Germany currently sit at 2.8% almost half the UK. As far as I know, the ECB rate is 4.5%. I don't know where 2.8% comes from. |
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Post by jonksy on Jan 15, 2024 14:46:39 GMT
Von der Leyen's re-election as head of EUSSR in question...
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Post by zanygame on Jan 15, 2024 19:44:20 GMT
That does assume tax levies replace interest rates entirely. For myself can I say that was never my intention, I felt it was a way of making the tool less blunt. Oh and POI Interest rates in Germany currently sit at 2.8% almost half the UK. That's because Germany is in a recession. Yes. I was just pointing out that interest rates vary across the globe. As you said: goods would also need to be factored in to any model if the UK were to maintain low interest rates while the rest of the world increased theirs. |
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Post by zanygame on Jan 15, 2024 19:47:28 GMT
That does assume tax levies replace interest rates entirely. For myself can I say that was never my intention, I felt it was a way of making the tool less blunt. Oh and POI Interest rates in Germany currently sit at 2.8% almost half the UK. As far as I know, the ECB rate is 4.5%. I don't know where 2.8% comes from. Hmm. Germany Long Term Interest Rate (I:GLTIR) Germany Long Term Interest Rate is at 2.10%, compared to 2.60% last month and 2.08% last year. This is lower than the long term average of 3.10%. Might be me missing something. |
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Post by zanygame on Jan 15, 2024 19:51:53 GMT
The same could be done with the alternative of an income levy. I know interest rates are the only tool they have now. That is what this is all about. I am suggesting they be given a better one. Yes - but that means that an unelected group are making arbitrary changes to Tax rates that have no democratic oversight. I also wonder how practical that suggestion is given the number of changes that may be needed across a year - if the tax rate changed 6 times I would struggle with my Self Assessment Tax Form let alone businesses employing large amounts of workers. But its OK for the same unelected group to decide interest rates. You're being very inconsistent. Yes the Devil is in the detail. That's why I think it would be part of a package. An increase in base rates with a top up of interest rates. I enjoy exploring ideas. |
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Post by Equivocal on Jan 15, 2024 20:10:57 GMT
As far as I know, the ECB rate is 4.5%. I don't know where 2.8% comes from. Hmm. Germany Long Term Interest Rate (I:GLTIR) Germany Long Term Interest Rate is at 2.10%, compared to 2.60% last month and 2.08% last year. This is lower than the long term average of 3.10%. Might be me missing something. I believe that's the average yield on long term government bonds.
I dread to think what they're like here; by all accounts (my son!) Sunak dropped a massive bollock on our index linked bonds.
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Post by zanygame on Jan 15, 2024 20:43:13 GMT
Hmm. Germany Long Term Interest Rate (I:GLTIR) Germany Long Term Interest Rate is at 2.10%, compared to 2.60% last month and 2.08% last year. This is lower than the long term average of 3.10%. Might be me missing something. I believe that's the average yield on long term government bonds.
I dread to think what they're like here; by all accounts (my son!) Sunak dropped a massive bollock on our index linked bonds.
Oops sorry. I suspected as much when I saw 'long term' |
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Post by see2 on Jan 15, 2024 21:47:10 GMT
Yet that is exactly what we do with interest rates. So again it is not the lack of so called control that is your real issue, just your dislike of an income levy being used instead of interest rate rises. No we don't - it is the elected government that gives the BoE the mandate to keep inflation at 2%. The only tool the BoE has that can affect the inflation rate is interest rates - but they elected government could remove that mandate at any time. The job given to the BoE was to aim at keeping interest rates at 2%, with a letter to the government if it felt the the need to move from 2%. A rider to the BoE was that the government could retake control of inflation if it deemed an emergency control was needed. |
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Post by see2 on Jan 15, 2024 21:53:17 GMT
The same could be done with the alternative of an income levy. I know interest rates are the only tool they have now. That is what this is all about. I am suggesting they be given a better one. Yes - but that means that an unelected group are making arbitrary changes to Tax rates that have no democratic oversight. I also wonder how practical that suggestion is given the number of changes that may be needed across a year - if the tax rate changed 6 times I would struggle with my Self Assessment Tax Form let alone businesses employing large amounts of workers. Yes, one of the intentions of NL handing over control of interest rates to the BoE was to help to stabilize the economy. So a fluctuating tax rate would mess that objective up. |
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Post by Pacifico on Jan 15, 2024 22:24:07 GMT
Yes - but that means that an unelected group are making arbitrary changes to Tax rates that have no democratic oversight. I also wonder how practical that suggestion is given the number of changes that may be needed across a year - if the tax rate changed 6 times I would struggle with my Self Assessment Tax Form let alone businesses employing large amounts of workers.
Yes the Devil is in the detail. That's why I think it would be part of a package. An increase in base rates with a top up of interest rates. I enjoy exploring ideas. How many people do you know who vote for lower (or higher) interest rates?. Personally I have never heard of a such a thing - which possibly explains why no Party has ever promised in an election that they would have lower (or higher) interest rates. Taxes on the other hand are an issue at every election. |
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Post by Pacifico on Jan 15, 2024 22:27:00 GMT
No we don't - it is the elected government that gives the BoE the mandate to keep inflation at 2%. The only tool the BoE has that can affect the inflation rate is interest rates - but they elected government could remove that mandate at any time. The job given to the BoE was to aim at keeping interest rates at 2%, with a letter to the government if it felt the the need to move from 2%. A rider to the BoE was that the government could retake control of inflation if it deemed an emergency control was needed. No - that is wrong. We set monetary policy to achieve the Government’s target of keeping inflation at 2%. |
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Post by zanygame on Jan 15, 2024 22:33:51 GMT
But its OK for the same unelected group to decide interest rates. You're being very inconsistent.
Yes the Devil is in the detail. That's why I think it would be part of a package. An increase in base rates with a top up of interest rates. I enjoy exploring ideas. How many people do you know who vote for lower (or higher) interest rates?. Personally I have never heard of a such a thing - which possibly explains why no Party has ever promised in an election that they would have lower (or higher) interest rates. Taxes on the other hand are an issue at every election. Hence the need to remove it from politics |
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Post by Pacifico on Jan 15, 2024 23:00:02 GMT
How many people do you know who vote for lower (or higher) interest rates?. Personally I have never heard of a such a thing - which possibly explains why no Party has ever promised in an election that they would have lower (or higher) interest rates. Taxes on the other hand are an issue at every election. Hence the need to remove it from politics How the hell would you remove taxation from politics and why would you want to do so? |
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