Macro Overview

May 2013

Trends and Implications?

The Great Stagnation?

Weak Recovery

Drivers of Growth

Potential GDP and Trend Growth

Labour Productivity

Underemployment

Monetary Policy

Bank Lending

Exchange Rate Issues

Fiscal Policy

C to I ?

M to X ?

MP v 2.0?

Impacts of MP ?

MPC Key Judgements

Impacts of a Stagnating Economy?

FP Position: tax or spend ?

UK v RoW