David Redshaw and Andrew Webb respond to an article by the bank of England’s Clare LombardelliClare Lombardelli is right about the problems of economics teaching (‘It’s pretty bad’: Bank of England top official on the lack of female economics students, 5 May), and it’s illustrated right there in her article – the idea that a quarter-point cut in the Bank of England base rate is going to make much difference in the present volatile Trumpist world.The obsession with interest rates by financial and economics wonks has always been a wonder to behold. Acres of newsprint are expended on it. But it was the great JK Galbraith who put it into perspective when he said that people, companies and banks will spend, borrow or lend when they feel confident to do so, and not because of where the interest rate is at any given moment. Continue reading...