The quote "a key element in raising the national saving rate is the elimination over time of the structural deficit in the public finances". This states what is a factor, not what direction it is working in. UK savings rise as an exact counterpart of government deficit has been rising for many months in the same period as the budget deficit, and since Sept.08 to Nov. 09 (last published data), all UK sterling savings rose 10% and bank deposits by 50%. See http://www.bankofengland.co.uk/statistics/ms/2009/dec/bankstats_full.pdf Table B1.2 The quote, "But uncertainty about how and when fiscal policy will respond has a direct bearing on monetary policy. And markets can be unforgiving" is also cited loosely without direct comment or explanation, leaving it like a hanging chard as if implying political criticism. But as everyone should know uncertainty in monetary and to a lesser extent fiscal policy in their details are normal and necessary.
Comments
History lesson for economists in thrall to Keynes
Niall Ferguson in the FT
The incredible shrinking General Theory
From
TheMoneyIllusion
via Ian Fraser (of course). It seems that the concepts of dynamic multipliers and "wealth effects" of neo-Keynesian Stimuli remain alive and well only in the Scottish Borders .... "a wing and a prayer"
the article is here
Round Tripping
http://www.asymptotix.eu/content/round-tripping-or-how-banks-are-currently-reporting-profits-and-paying-bonuses
Crowding Out 2
http://www.asymptotix.eu/crowding-out-2