Deflation a Symptom of Post-Crisis Economy: Moore

The video discusses the current state of the UK economy, highlighting consumption as a key driver and noting signs of slowdown in retail and housing. It examines stock market risks, the aftermath of the credit boom, and deflationary pressures. The role of central banks and monetary policies in maintaining economic stability is analyzed, along with potential risks of excessive quantitative easing. Political uncertainties, such as the upcoming UK election and potential referendums, are also considered as factors impacting economic and investment decisions.

What is identified as the biggest driver of GDP in the UK?

• Government Spending

• Consumption

• Investment

• Exports

What has been the stock market's response to the anticipated economic recovery over the last three years?

• A decline of 20%

• No significant change

• An increase of 40%

• A decline of 40%

What is the main concern regarding the aftermath of the credit boom?

• Increased consumer spending

• Deflationary pressures

• Rising interest rates

• Inflationary pressures

What is the risk associated with central banks' monetary policies?

• They might increase taxes

• They might not do enough

• They might go too far

• They might ignore inflation

Why are equities considered a good investment in the current economic climate?

• They have low yields

• They offer higher yields than sovereign bonds

• They are risk-free

• They are more volatile than bonds

What political event is causing uncertainty in the UK economy?

• Brexit negotiations

• The Scottish referendum

• The upcoming general election

• The US presidential election

What is a potential consequence of a hung parliament in the UK?

• Increased certainty

• Immediate economic growth

• Uncertainty in the stock market

• Stable economic policies