BOE's Bailey Says the Fall in Inflation Will Continue

The transcript discusses the impact of a significant trade shock on national real income, leading to distributional questions and affecting wage bargaining. It highlights the current policy setting and the movement of economic indicators, suggesting a continued decline in inflation by the year's end. The discussion also covers wage expectations, noting a recent surprise in wage marking trends and the importance of inflation expectations in shaping policy decisions.

What is one of the main consequences of the terms of trade shock discussed in the video?

• Increased national real income

• A rise in distributional questions

• Stable inflation rates

• Decreased wage bargaining

What is the current trend in inflation according to the video?

• Inflation is not expected to change

• Inflation is expected to rise significantly

• Inflation is expected to fall markedly by the end of the year

• Inflation is expected to remain stable

What unexpected trend in wage setting is mentioned in the video?

• Wages have decreased significantly

• Wages have increased unexpectedly

• Wages have followed inflation trends

• Wages have remained stable

According to the DMP survey, what is the current expectation for wage settlements?

• Wage settlements are expected to decrease

• Wage settlements are not expected to change

• Wage settlements are expected to increase

• Wage settlements are expected to remain the same

How does the video suggest inflation expectations might influence wage settlements?

• They will have no influence

• They will lead to a decrease in wage settlements

• They will cause wage settlements to increase

• They will stabilize wage settlements