Letters to the Editor – 07/02 – Spillover effects, Charity lobby, Best of Twitter
Spillover effects
[Re: Global growth has peaked for now – but no need to panic, Wednesday]
We’re all talking about the spillover effects of US monetary policy on emerging markets at the moment, but consider the situation over the next five to ten years. Governments across the West will surely embrace rising prices as a way to inflate away their debts, leading to a relative appreciation of emerging market currencies, as well as a decline in the value of their foreign exchange reserves. Central bankers in the developing world complaining about the Fed’s selfishness should take steps now to steel themselves against these developments.
Richard Cowey
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Charity lobby
[Re: How charities lavish millions of taxpayer money on left wing campaigns, Wednesday]
Some have argued that the opposition of various charities to the Lobbying Act somehow proves their independence from the government, whose funds they often rely on. The Lobbying Act is wrong, I agree. But the source of charitable funds matters a great deal on an ethical level. You are quite simply not a true charity if you receive taxpayers’ money. Morally, charity is voluntary or it is nothing. Government money is anything but voluntary, as the state is of necessity funded by force.
Tom Paine
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BEST OF TWITTER
MPC has no choice but to revisit forward guidance next week. Courtship was brief, but now in tatters.
@EY_ITEMClub
Tube strikes are a reminder of how unions can’t come to terms with economic reality, like Labour.
@RachelMaclean
Masterly inactivity continues to be MPC policy! No change to Bank rate, QE or forward guidance.
@asentance
Azerbaijan hosting Eurovision backfired, exposed human rights abuses. Same for Russia and Sochi?
@danielrhamilton