A sideways look at economics

“I know what you’re thinking about,” said Tweedledum; “but it isn’t so, nohow.”

“Contrariwise,” continued Tweedledee, “if it was so, it might be; and if it were so, it would be; but as it isn’t, it ain’t. That’s logic.”

From Lewis Carroll’s – Through the Looking-Glass

Gove and Johnson, the Tweedledum and Tweedledee of British politics, sent shockwaves through Westminster yesterday by reversing roles within a couple of eventful hours. If that left you confused, you’re not alone. But markets were largely unmoved – at least in terms of the value of sterling. A lot of sound and fury, signifying not very much – that was how the markets read it.

For real effects, politicians step aside: enter the man of the moment, Mark Carney. His speech knocked 1% off the value of sterling – an effect which held.

If you really want to damage the currency, get the central bank to do it.