UK - % change in National Debt compared with GDP 1975 to 2010
Source: Office of National Statistics
UK - National Debt (BKQK with NNBK adjustments) vs GDP (IHYR) 1975 - 2010 % change q on q previous year
3
comments:
Oliver
said...
Neil, in all of the above charts there is a much stronger correlation between the respective graphs prior to 1986 than afterwards. Is there a reason for this in your opinion?
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3 comments:
Neil, in all of the above charts there is a much stronger correlation between the respective graphs prior to 1986 than afterwards. Is there a reason for this in your opinion?
Not sure, but monetarist money supply targets were abandoned completely in the mid 80s once they were comprehensively shown to be a crock.
A graph against unemployment would probably show a peak at that point since that is where monetarism appears to have pushed the demand loss.
Older data is much weaker though so it may just be the granularity coming through.
thnaks, that makes sense.
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