London School of Economics's Bean on the UK Economy

The video discusses the UK chancellor's fiscal package and its impact on monetary policy, highlighting the ambiguity in its effects on inflation and demand. It explores interest rate predictions, suggesting potential rate hikes by the Bank of England. The discussion shifts to fiscal policy, emphasizing the unsustainable fiscal path and the need for government spending cuts. Finally, the impact of rising interest rates on the housing market is analyzed, noting potential slowdowns due to increased mortgage costs.

In what ways could the proposed tax cuts affect government spending?

What challenges does the UK government face in convincing investors about its fiscal plans?

How do rising interest rates influence consumer behavior in the housing market?