Bank Of England Says It Chooses Recession Over Inflation In Monetary Policy

[littlepotter 76,612]

Inflation wouldn't prevent a recession, it would simply make the next one worse.

[Economy 52,861]

7 minutes ago, Nathan said:

Yes, and a billionaire 

Oh ok. Well I can't speak to that cuz I know nothing about him.

 

But I don't see th relevance to the Central Bank tho and its policy

[Economy 52,861]

2 minutes ago, littlepotter said:

Inflation wouldn't prevent a recession, it would simply make the next one worse.

Exactly... Hence the need to try to contain it

[KORG 4,756]

1 hour ago, Economy said:

 

U guys are going on about Conservatives... The Central's Banks mandate is always the same. It does not matter if a left or right wing party is in power. In fact when they were first established in the early 20th century they were made to operate seperate from the Government on purpose to prevent politics from potentially influencing their decisions as much as possible

 

Here in Canada, in the US and in pretty much every other Nation the general take is the same

 

Also @bionic what u said about purchasing power is exactly what they are trying to maintain. When u get demand that cannot be met by supply inflation always far outstrips wage gains. This is effect is even worse in times like that than during recessions as far as lost purchasing power goes

 

I know this, however, all these things could've been prepared for, or prevented.

For example, not acting to nationalise Water & Energy is ridiculous. The main energy companies are reporting endless record profits in the BILLIONS. That's, frankly, unacceptable in times of crisis, war, pandemic etc.

The railways should also have been nationalised to increase the ease and reduce the cost of freight & commuting. The problems this alone would solve are insane. Especially in London.

There have been MINOR investments made into us being a self-sustaining country, nowhere near enough, and the bank of England are only there to look after themselves, but the government have had since 2008's recession to prepare and safeguard and they constantly fail to do it.

Wheres the regulations on landlords, zero hour contracts etc? Nowhere. 

I'm very privileged because I own property and I am in the higher tax bracket, but I have friends and family who aren't, and recession.. living through ANOTHER recession that could've been prevented but has simply been gone blindly into... I cant tolerate it anymore.

[Economy 52,861]

2 hours ago, KORG said:

I know this, however, all these things could've been prepared for, or prevented.

For example, not acting to nationalise Water & Energy is ridiculous. The main energy companies are reporting endless record profits in the BILLIONS. That's, frankly, unacceptable in times of crisis, war, pandemic etc.

The railways should also have been nationalised to increase the ease and reduce the cost of freight & commuting. The problems this alone would solve are insane. Especially in London.

There have been MINOR investments made into us being a self-sustaining country, nowhere near enough, and the bank of England are only there to look after themselves, but the government have had since 2008's recession to prepare and safeguard and they constantly fail to do it.

Wheres the regulations on landlords, zero hour contracts etc? Nowhere. 

I'm very privileged because I own property and I am in the higher tax bracket, but I have friends and family who aren't, and recession.. living through ANOTHER recession that could've been prevented but has simply been gone blindly into... I cant tolerate it anymore.

I get criticism on how a country invests (or doesn't) or allocates its revenue or whatever or what regulations it's missing etc

 

It's just that ppl are kinda mixing those issues with the Central Bank which are totally seperate. 

 

The Central Bank doesn't deal with taxation, investments in infrastructure or education or what to privatize or not or any of those issues. Thats up to Parliament. Central Banks simply manage monetary policy to target an inflation rate target and maintain stability in money supply that's it. Has nothing to do with conservatives or not

 

But in any case... I'm not sure the issues ur talking about would have made a MASSIVE difference in all this anyway. This is very global rn. Just about every Nation is going thru a major inflationary phase. Having a cheaper transportation system or a little more energy security I think would of made a modest impact at best. Ud still be subject to global shortages and supply chain issues that are causing everyday items to surge

 

PS: my Province has had regulations on landlords for time including rent increase laws. It's not as big a problem solver as you might imagine it to be because of unintended consequences