Tuesday, July 24, 2007

How worried should we be about the rising cost of living

The cost of living

Radio 4 listener Adam Potter meets with the governor of the Bank of England Mervyn King in attempt to understand the role of the MPC in setting interest rates. In the interview King states that he would like housing costs to be included in the inflation measure. The podcast includes some input from Bootle and his view on the direction of interest rates. Excess money supply is discussed and comments are made that the BoE take little notice of money supply. WARNING. The program starts about 1 and half minutes into the podcast so be patient! For those on a slower link the program transcript (pdf) is here: http://news.bbc.co.uk/1/shared/spl/hi/programmes/inside_money/transcripts/07_07_21.pdf

Posted by denzil @ 01:20 PM (522 views)
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2 thoughts on “How worried should we be about the rising cost of living

  • The above link should have said podcast in the title.

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  • japanese uncle says:

    Only if he had said this five years ago.

    If mortgage cost is to be included in the inflation measure, then inflation target should eventually be -5% or something rather than +2%, as houe price will definitely drop significantly, bringing down the size of mortgage repayment as well. Otherwise the target will be something too easy for the BoE to achieve.

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