To spend or to save?

Consumer spending must be encouraged, explains Charlie Bean, deputy of the Bank of England, and therefore interest rates are being kept low but is this actually fair to savers and is this really a solution for the weak economy? Overall, UK households saved only 3.2% of their income between April and June this year and even more striking is the distinction between the big group without savings and the few who have been able to maintain their savings. Will this spending-encouraging policy really help the economy recovering? Bean’s answer is clear : The consumer spending will not offer an answer in terms of long-term economic growth, though it must be seen as a defence against an even weaker economy.  (Guardian)

Ann-Sophie Parmentier