Why the UK is desperately in need of a recession

Recessions are unpleasant, but they are a part of the normal economic cycle and have an important role to play to ensure competitiveness and productivity remain strong, says Hector Kilpatrick, chief investment officer of Cornelian Asset Management.

Measures such as quantitative easing and negative interest rates are known as extraordinary monetary policies.  However, it is becoming increasingly apparent that central banks now regard these measures as part of the everyday tool box for managing the economy and their use is becoming the norm rather than the exception. For a good example of this, we need look no further than the Bank of England's kneejerk introduction of a further £60bn quantitative easing  package following the leave result in the Brexit referendum.   While the introduction of extraordinary monetary policies at ...