Open markets may aid UK productivity problem

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Speaking at the 31st IEA State of the Economy Conference, Ben Broadbent of the Bank of England's Monetary Policy Committee discussed the economic outlook for the UK economy. He suggested that a more open economy was beneficial to the UK and would be able to enhance stagnating UK productivity.

He argued that the UK has benefited from policies from Europe, citing Mario Draghi's policies for praise. He said that if European authorities had failed to stabilise the eurozone, UK banks would have found George Osborne's schemes like Funding for Lending "much more attractive" and it would have had a "much larger" impact.

Mr Broadbent's comments also extended to bank competition. He argued the need to create a banking sector where ''no size is too big to fail''. This does not necessarily mean shrinking financial organisations, rather, he stated the need for a ''structure that allows them to fail and that they have sufficient loss-absorbing capacity on their balance sheet''.

Articles concerning Mr Broadbents comments can be read here (Wall Street Journal), here (Bloomberg), here (Huffington Post), here (International Business Times), here (This is Money) and here (Financial Times).