Blanchflower: BOE Must Act on 'Really Awful' Data

The transcript discusses the inaction of the MPC and the deteriorating economic indicators, such as the Economic Sentiment Index and Consumer Confidence Index. It highlights the limited options available for monetary policy, suggesting potential actions like cutting rates and quantitative easing. The discussion shifts to fiscal policy, proposing immediate actions like VAT cuts and infrastructure spending to prevent a recession, emphasizing the need for swift action to avoid past mistakes.

What was the state of the Economic Sentiment Index according to the first section?

• It was not mentioned.

• It indicated a collapse in various sectors.

• It remained stable.

• It showed significant improvement.

What is the main concern about monetary policy as discussed in the second section?

• It is the only solution.

• It is not needed at all.

• There are very few options left.

• There are plenty of tools available.

What fiscal policy is suggested as a quick measure in the third section?

• Infrastructure spending

• Corporate tax cuts

• VAT cuts

• Increased savings

What is the potential impact of a VAT cut as mentioned in the third section?

• It would have a minimal effect.

• It is not considered a viable option.

• It could have a significant and immediate impact.

• It would take years to show results.

What mistake from 2008 is highlighted in the third section?

• Waiting too long to respond

• Implementing too many policies

• Acting too quickly

• Ignoring monetary policy