SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level

» Start this Course
(Practice similar questions for free)
Question:

Why didn’t the Bank of England raise Interest Rates when Inflation was over their Target?

Author: go kys



Answer:

-Monetary Policy aims for Price Stability. But from 2010-2012, Inflation was still High, and yet QE Kept going -This can be Explained how Britain entered a Economic Shock, and Concerns of entering a ‘Second Dip Recession’ -BoE said its not Needed as Inflation would fall Naturally. Raising % Rates would make it more likely of Another Recession


0 / 5  (0 ratings)

1 answer(s) in total

Author

go kys
go kys