Is 'creative disruption' responsible for the UK's slowing economy?

Arjun Bhandari, an analyst on Henderson's Diversified Income Limited investment trust looks at the disruptive trends in the economy and how their interaction may be contributing to the current low growth, low inflation environment.

It has been eight years since the financial crisis and the global economic engine is still struggling to get out of first gear. Growth and inflation both remain low, in spite of rock bottom interest rates and massive coordinated global quantitative easing programmes. Why is this the case and what are the implications for investors? Debt trauma Many have subscribed to the 'balance sheet recession' school of thought, a thesis developed by Japanese economist Richard Koo, which suggests consumers retrench and try to shore up their balance sheets by paying down debt and spending less follo...