Business, Finance and politics, an analysis

Sharan Banerjee: Business and Financial cycles ordinarily last longer than the political span of most governments. Claudio Borio of the BIS in 2012 had remarked with some great data that the ebb and flow of these cycles can’t be measured in “calendar years” but rather a much more prolonged duration.

And, there are seldom moments in history when any government can course correct such cycles within a span of six weeks. Governments which have accepted the role of foreign factors and foreign constraints in their policy choices have done a relatively better job in maintaining stability at the helm of affairs.

Any government in Britain has been dealt with a terrible hand - aftermath of Brexit, COVID, the Ukraine crisis and now a looming recession. It is almost impossible for any Prime Minister to deal with any, if not all of this, within such a short time.

An incoming Prime Minister and government, either has to honestly ask for time and address the short run factors facing the country or come up with a radical plan to alter the unravelling that’s underway in the UK. The policy tradeoff is very clear.

(Views are exclusive of the author.)