Saturday, March 27, 2010

Confidence affects things

On the BBC today, the Institute of Directors have announced that they are unimpressed with the Chancellor.

45% of those directors of companies interviewed thought Darling is doing a bad job, whereas only 16% thought he was doing a positive job.

We've talked in previous weeks about how confidence is all important in generating economic activity. The most recent channel we thought of was the interest rate channel, whereby interest rates stimulate investment. This only happens though if firms are confident. There are questions about whether indeed businesses are confident enough to invest, even if the government is spending money to stimulate the economy...

No comments:

Post a Comment