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crash2006

Boe Monetary Policy Framework

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Question if king can't keep the inflation figure at 2% then why doesnt the Chancellor of the Exchequer in the annual Budget statement increase the target to 3.5% or something like that. I take it we can also blame Chancellor of the Exchequer for inflation and loss of wage earnings/ workers productivity as he kept the target figures at 2% when its been almost 3 years we can't even get to touch or come near that target figure.

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Isn't it a medium term target of 2%, in a sense Mystic Merv keeps saying in the medium term it will be back on target.

Think of it more as targeting the end of the rainbow. It's always where we would like it to be in 18 mths - 24mths times. Of course in 18-24 mths time, it will be on target in another 18-24 months time.

Plus you have the problem of Goodharts law.

Edited by interestrateripoff

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Isn't it a medium term target of 2%, in a sense Mystic Merv keeps saying in the medium term it will be back on target.

Think of it more as targeting the end of the rainbow. It's always where we would like it to be in 18 mths - 24mths times. Of course in 18-24 mths time, it will be on target in another 18-24 months time.

Plus you have the problem of Goodharts law.

this is very true.

there was a chart comparing the BOE projection vs actual and they say the same thing every single time - we expect inflation to be high but it will fall, maybe even below 2% in 18-24 months.

rather than their projected falls happening, inflation actually went up so when the next forecast came they ssid the same thing - its high now but will fall below 2% in 18 months.

rinse and repeat every 6 months.

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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