Comments: Motoring along in a world of growth

So, David Smith predicts CPI (currently at 2.7%) to fall back to 2.0% by end of March 2007 - you heard it here first. Let's all come back in 3 months and see how far off the mark he was.

Posted by Hussein Shah at December 31, 2006 03:54 PM

Try and read the piece before putting your foot in your mouth. It says nothing of the sort.

Posted by David Smith at December 31, 2006 04:03 PM

Happy New Year to you David. You're an interesting read. Please keep it up.

Posted by Gary Bezowsky at January 2, 2007 04:41 AM

Nice summary David. You could add the massive rally in sterling versus the dollar to your list of economic events . I know it was mostly a USD move, but sterling is now very high on a trade-weighted basis, and cable is nearing the 2.0 handle. I wouldn't be surprised if this had taken place against a backdrop of high and rising UK interest rates, but that isn't so obviously the case. As you note the outlook on rates is uncertain, though it does seem that we are somewhere near the top of the tightening cycle. (For the record, I am short the pound against the dollar...cough, cough).

I, like many others, thought Friedman was great. I suppose the good news that came of his passing is that his thoughts once again caught the public imagination. His TV series 'Free to Choose' is essential viewing for anybody who wants to learn essential economic principles from a master economist and master presenter. His videos can be found kindly, free available on Google video and are also available on another site (I can't remember the name) in their entirety.

Posted by Caravaggio at January 3, 2007 01:23 AM