Can we now take a break from melodramatic press reports about plunging confidence on the back of ‘renewed fears’ about an economy that seems forever ‘on the brink’ of recession? At this point there should be no renewed fears, just reality.
Until recently it looked like the country would avoid recession. Unfortunately, a commodity boom kicked in, inflation rocketed – triggering in effect ultra-tight monetary conditions and making housing price correction a collapse. This, by the early summer, had squeezed the life out of the economy and was quite bad enough.
