For years, we've grown dependant on American consumers as the world's spenders of last resort. They've kept Europe out of recession, allowed China to industrialise, and prevented global deflation. But at the same time, they've not been looking after their own futures.
Evan DavisPersonally, I don't see old economics and behavioural economics as opposed. It is useful to assume people are rational as a good approximation to their long term behaviour, but it would be unwise not to think how in practice their behaviour may deviate from that simplifying assumption.
Evan DavisIt doesn't annoy me but I think of myself as a presenter who is gay, rather than a gay presenter. It's a subtle distinction, but that's how I view it.
Evan DavisMost people hugely underestimate the amount of 'empty space' we have in our country. Fly over the U.K., and you see that human settlement does not fill up the U.K. at all. It accounts for something of the order of 15 per cent of the landmass.
Evan DavisMy instinct is to assume that we consumers are an inconsistent bunch. We like competition if it delivers low prices, but grumble if it delivers the bad news that prices need to go up.
Evan DavisInterest rate cuts have an effect in stimulating an economy by directly or indirectly making someone, somewhere, spend more than they otherwise would. That extra spending increases demand and ensures that we all carry on with work to do, without us having to slash our prices or our wrists.
Evan Davis