Jonathan Bouquet 

May I have a word about… economists who terrify us with talk of doom loops

They might think twice before using such language in front of the general public
  
  

Kristalina Georgieva, chair and managing director of the IMF.
Kristalina Georgieva, chair and managing director of the IMF. Photograph: José Luis Magaña/AP

Truly, we live in parlous economic times. For proof, consider the warning from the International Monetary Fund last week: “The sovereign bank nexus could lead to a self-reinforcing adverse feedback loop that could force the government into default”, calling the process a “doom loop”. Bewildering or what?

I know economists are a rarefied breed, but they’re not doing themselves any favours when they dish up warnings like this. Mind you, “doom loop” is sensible shorthand. After all, consider its full meaning: “The doom loop is the circle of vulnerability where a country’s banking system can be severely hurt by volatility in the price of the sovereign bonds they hold for reserves resulting in a contraction in lending provided by the banks.”

As for George Freeman, a science minister, commenting on partygate and the fixed penalty notices issued to Boris Johnson and Rishi Sunak, he said: “So I’m pleased that the PM and the chancellor have issued fulsome apologies, which is absolutely right.” Mr Freeman, consider the definition: “Complimentary or flattering to an excessive degree.”

I am grateful to Ian Dutch for the following: “Applicants for a counterterror check needed for an ‘airside’ airport pass, will be ‘expedited up the pipeline’ by the UK Security Vetting (UKSV).”

I’m further grateful to David Darwin for: “Kwasi Kwarteng is reported today as saying about Rishi Sunak and his wife that they had been ‘incredibly transparent’ about her non-domicile tax arrangement. I assume he did not intend to suggest that it is scarcely believable that a Conservative minister would be open about his family’s tax affairs.” Just so.

• Jonathan Bouquet is an Observer columnist

 

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