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Issue 25 | Summer 2008

Click on the articles below for highlights of this issue, or
use the ‘PDF download’ tool to see the whole magazine.

Article 1

THE VIEW
FROM HERE

Article 2

10 QUESTIONS FOR: GINNIE ATKINSON

Article 3

COVER STORY: EDINBURGH TAKES GRADUATE HONOURS

Jeremy Peat, Director, The David Hume Institute, discusses Edinburgh's requirements for riding out today's climate of economic uncertainty

It is a huge pleasure to be penning this column once more, after a gap of 18 months or so. But how the environment has changed over that period. As Mervyn King persists in reminding us, the 'NICE' (or non inflationary and stable growth) period is clearly behind us and the way ahead is strewn with rocks.

As others have pointed out in recent columns, we face a fearsome combination of high and rising inflation, primarily due to the continuing surge in world prices for oil and foodstuffs, alongside a sharp decline in domestic and global growth, accentuated by the continuing impact of the credit crunch and fall out in the financial sector.

Amidst the gloom there are some brighter glimmers. For now retail sales appear to be holding up; but that is likely to prove a temporary phenomenon as real disposable incomes decline, unemployment rises and interest rates edge upwards. The increase in inflation, thus far, has been an external phenomenon, without as yet causing any acceleration in pay demands.

However, inflation expectations have started to rise - as evidenced by both consumer surveys and the gap between indexed and nominal bonds - and inflation is pushing its way along the supply chain. The risk of higher inflation becoming embedded in behaviour is certainly present and growing.

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Also in this issue:
>	Unlocking potential in the planning system predicted
>	A cocktail of infrastructure funding options
>	Sport: more than just a game