Boom years not coming back in a hurry

gloomy clouds
Some figurative gloomy clouds
"Even compared with previous examples of financial crisis - whether at home or abroad - the UK economy has been puzzlingly weak for a long time" Paul Fisher
  • | by Kristian Dando

Here’s some cheerful tidings to lift you out of that post-Bank Holiday malaise: a prominent member of the Monetary Policy Committee of the Bank of England has thrown a damp towel over hopes of an economic ‘boom’ happening any time soon.

Paul Fisher, the exeuctive director of the Bank of England's markets division, said that households have resigned themselves to being worse off amid the prolonged downturn, and that the sluggish period is only two-thirds to three-quarters complete – meaning that we’ve got a while to go yet.

"Even compared with previous examples of financial crisis - whether at home or abroad - the UK economy has been puzzlingly weak for a long time" doom-and-gloomed Fisher in a speech in Cardiff. "It is as if the different groups within our society - households, businesses, banks and the government - have all decided that their future financial positions, on average, will be worse than they thought before the crisis."

Fisher also argued that folk were more willing to accept lower wages than before because they were afraid of losing their jobs. “The acquiescence of the UK labour force in accepting lower real wages is quite remarkable for those of us who grew up during the wage-price spirals of the 1970s and 80s. It explains in part why unemployment has stayed much lower than we would have expected, given the weakness of output growth. Much of the labour force has priced itself into growth.”

So that's that then. Might as well go back to bed.