U.K. Is Poster Child for Monetary Policy: Zervos

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Aug. 13 (Bloomberg) -- David Zervos, chief market strategist at Jefferies, explains the differences between how the U.K. and U.S. handled monetary and fiscal policy. He speaks on “Bloomberg Surveillance.”

Over the united states.

I think right now, we have an unreliable girlfriend as opposed to an unreliable boyfriend at the helm.

An island economy with massive immigration, we don't have that, except on the island of manhattan.

There are big differences.

But from the standard of looking at the economy and trying to draw some extrapolations, people will always do it.

And i think there's some benefit to doing so.

The u.k. did something very different that -- than we did.

They allowed inflation to rise up over 4% for the better part of two years.

They took rates very negative and they were the first to come out.

They took that rogue idea of targeting a higher level of inflation, which bernanke brought up, but never did.

Under but he thought he was nuts.

It worked out pretty darn well for the u.k. are they struggling a little bit as they come out of this thing because it got europe next to them and a lot of other issues related to some fiscal tightening they did ages ago?


But they are in a good place.

Is the consensus on the poster child -- on u.k. being the poster child wrong echo no.

What they did on monetary policy, they are the poster child for, in my opinion.

Mervyn king writing a letter every month, sorry, i missed my target, i'm going to get back there soon, trust me.

The guilt market never sold off and the economy came out much faster than any other european counterparts command was a -- and was also doing much better on the unemployment front.

On the fiscal side, they took a risk that they could run easy policy and tighten fiscally.

And i think it worked out.

Have they got that balance perfect?

No, but nobody does.

Now it is time for the agenda, where we look at the stories shaving today.

Ryan tracy hit a home run.

Anybody passed cfa level three as of yesterday, congratulations to all of you.

It is a great article on repo's.

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