follow best practice with a focus on customers, the Life Sciences Plan has become a long list of actions for government. Finally, the omission of a plan for the Chemicals Sector is cause for concern given it is a high value-added sector declining rapidly. Ends

with a -ve growth contribution. One major challenge for the Government is to stop the decline in high value-added manufacturing from contributing negatively to growth. The Sector Plans are a good start, but there is an insufficient focus on customers. While the Defence Plan can be considered to

This was also central to James Meade's Trade and Welfare (1966) and the theoretical foundation for GATT.

You did mention Basel but didn't go into it in any detail. But yes there were several areas of the Basel regs that absolutely contributed to the crisis. Which is why we got Basel 3! But in my view MTM is a red herring.

This chart gets to the heart of the issue. I led a team that did the MTM for the various vintages of sub-prime assets. The question you need to ask is why did investors buy 2006 and 2007 when the MTM valuation was less then 30 cents to the dollar? And House prices hasd been falling since 2006?

I don’t think the argument that MTM exacerbated the financial crisis is that credible. It has reduced systemic risk compared to book value accounting as credit should start to be constrained when early warning signs start flashing not after the event - resulting in a much higher default correlation

of investment in public infrastructure increasing growth as noted in my @bennettschool.cam.ac.uk note bennettschool.cam.ac.uk/blog/financi... Instead the Chancellor sticks to gilt financing which reduces investment & places greater pressure on the public finances & ultimately financial instability.