Can UK's 'economic luck' last'?

Mervyn King described the UK's "non-inflationary consistently expansionary" economic performance since sterling's eviction from the exchange rate mechanism as "nice" earlier this month. Can the "nice" performance last, this article asks? Two distinct classes of threat can be distinguished: those to trend growth; and those to stability, it says.

First published in the UK edition of the Financial Times, 31 October 2003.

Mervyn King, the new governor of the Bank of England, calls it "nice". What he

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