BOE 'About Right, Maybe a Little Too Little': Adam Posen

The transcript discusses the MPC's policy response to Brexit, highlighting the rate cut and the potential for recession. It questions the effectiveness of monetary policy in the current economic context, emphasizing the need for fiscal and trade policy adjustments. The MPC's strategy on inflation and output tradeoffs is analyzed, with a focus on the potential impact of currency fluctuations. The discussion concludes with recommendations for fiscal policy and addressing structural issues in the UK economy, such as real estate supply and R&D funding.

What was one of the key actions taken by the MPC to address economic challenges?

• Introducing new taxes

• Increasing interest rates

• Implementing a rate cut

• Reducing government spending

How does the UK's decision to leave the EU primarily affect its economy?

• By stabilizing asset prices

• By enhancing global competitiveness

• By increasing financial liquidity

• By creating real economic shocks

What is the primary focus of the MPC's extended forecast period?

• Current asset prices

• Long-term inflation

• Immediate employment rates

• Short-term growth

Which fiscal measure is suggested to stimulate the UK economy?

• Increasing VAT tax

• Cutting VAT tax temporarily

• Reducing R&D funding

• Limiting trade agreements

What is a significant structural problem in the UK economy mentioned in the transcript?

• Lack of technological innovation

• Excessive government debt

• High unemployment rates

• Recurring real estate bubbles

What is a recommended action to support UK universities and R&D?

• Reduce research grants

• Boost government funding

• Limit foreign student admissions

• Increase tuition fees

What is considered more important than fiscal measures in addressing the economic shock?

• Trade agreements with the EU

• Monetary policy adjustments

• Reducing public spending

• Increasing interest rates