Economic Stability and the Business Climate - speech by Kate Barker

In a speech today at the Managing Directors’ Club, Sheffield University, Kate Barker – a member of the Bank of England Monetary Policy Committee – considers the significance for the future behaviour of the economy given the strikingly different trends in stability for the whole economy against individual firms.
Published on 24 November 2005

Stability in this context refers to the volatility of output growth. She also discusses recent economic performance and prospects for the UK economy.

Ms Barker says: “…the relative stability of the macroeconomy is not necessarily repeated at the level of the individual firm.” Drawing on Bank of England research, she observes: “…preliminary work suggests that the ‘Great Stability’ of the UK economy since the inception of inflation targeting has not been reflected at the level of individual firms – and indeed that in the UK individual firms may have seen increased volatility for sales and for profits.”

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