Blanchflower on BOE Decision, Inflation, Brexit

The video discusses the impact of inflation driven by the FX effect and Brexit on the UK economy. It highlights the economic slowdown, falling real wages, and their political implications, particularly for Theresa May. The discussion extends to Brexit's uncertain future and its political ramifications. Finally, it explores the debate on inflation targeting by central banks, suggesting a potential shift in policy to address structural changes in the economy.

What is one of the main drivers of inflation discussed in the video?

• Rising oil prices

• FX effect

• Increased government spending

• High consumer demand

What was the unexpected consumer behavior after the Bank of England's rate cut in August?

• Decreased borrowing

• Increased saving

• Decreased spending

• Increased spending

How did the political events affect Theresa May's popularity according to the video?

• Her popularity was unaffected

• Her popularity decreased

• Her popularity remained stable

• Her popularity increased

What is the potential outcome for Brexit as discussed in the video?

• A hard Brexit

• A no-deal Brexit

• A softer Brexit

• Brexit will be canceled

What is the suggested change to inflation targets discussed in the video?

• Keeping the target the same

• Eliminating the target

• Raising the target

• Lowering the target

Which economist is mentioned as part of the group advocating for a change in the Fed's inflation target?

• Paul Krugman

• Joseph Stiglitz

• John Maynard Keynes

• Milton Friedman

What is the current inflation target mentioned in the video?

• 2.5%

• 2%

• 1%

• 3%