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Adrian Blundell-WignallFinancial Review |
US government debt and the size of the collateral-based non-bank financial intermediaries sector need to lose weight. This should come first.
Oligopolies and a lack of foreign investment are driving up the cost of living, yet governments on both sides of the aisle are turning a blind eye.
Europe has a different monetary policy structure that leads to less extreme outcomes compared to anglo-saxon nations.
We need to stop subsidising the sector and bring back a resource rent tax to support the real determinants of long-term growth.
The administration is exacerbating the problems left over from the pandemic, risking inflation and recession.