The UK runs a sizable current account deficit, traditionally financed by foreign direct investment into the UK. Yesterday, the UK Home Secretary suggested companies should be required to list foreign workers, implying that too many foreign workers is a bad thing.
The UK's challenge may be to persuade foreigners to invest in the UK if policy signals suggest the government regards foreign workers as second class. The UBS CIO wrote this week on the benefits of diversity in a workforce – it leads to better decision making, and better performance for companies.
Fed Vice-Chair Stanley Fischer suggested that fiscal policy had a role to play in driving growth. This is hardly economic heresy. The issue is not that monetary policy has suddenly ceased to work. The issue is that monetary policy has always worked well in some circumstances, and less well in others.
The Euro area gives us the account of the last ECB meeting. With a change in tone detected by investors, and questions over how the ECB will handle quantitative policy next year, any account of the recent ECB deliberations is likely to be fraught with interest.