written by Richard Woolhouse on 29/11/2013
Even the sharpest brains miss things. Earlier this week I attended a conference held by a very reputable group of economists. During a wide ranging discussion of global economic prospects a chart flashed up showing the change in net lending to businesses (non-financial corporations) in the UK. It’s a chart many will have seen before as it regularly makes an appearance in various Bank of England publications. It shows that net lending to businesses was expanding at more than double-digit rates prior to the crisis and since then has been contracting consistently for nearly five years.