Economists need to pay more attention to resources as there is a clear and pressing need to develop greater resilience to commodity price shocks. While this will not solve all our economic problems, it can make an important contribution to many of them. For this reason, the careful management of resources should be right at the heart of economic policy.
Average euro zone inflation was a provisional 0.7% in October, much weaker than the ECB's official target of "close to but below 2%". It is not just the low level of inflation that has been a concern for the Bank, but the rapid decline in recent months: between July and October the rate fell by 0.9 percentage points, from 1.6% to 0.7%.
The issue that I've raised the most in the past year or so is not inflation, but the difference between inflation and wage settlements. Especially with the decrease in the savings ratio of late, as people attempt to keep their lifestyle going by raiding savings pots, price increases and their relation to wages are key to the survival of the recovery. Without one, we cannot have the other.
Next week is a big week for the new Governor of the Bank of England, and the UK economy as a whole. Wednesday at 09.30 will see Carney take the stage, the pound take a dive and the nation will hold its breath. By the end of Carney's first Quarterly Inflation Report we should have a much better idea of what we can expect next.