The British cabinet has recently been hailing the lowest unemployment rate since 1974, while starting to lob brickbats at the Bank of England for mismanaging inflation. These factors may start to interact, ruining the convenient thesis that inflation will fix itself by removing spending power. What if inflation expectations become unanchored in an exceedingly tight labour market? If the Bank is unable gently to tighten its way to a moderation of growth, the monetary policy committee might be obliged to create a recession.
What reducing inflation means for BoE independence By Peter SedgwickWith inflation possibly approaching 10%, the Bank of England faces its toughest test since gaining independence in 1997. There is no post-war precedent for UK inflation on this scale being reduced without the government taking the crucial policy decisions.
MEETINGS Looking ahead to the June FOMC meeting Thursday 16 June, Broadcast Bill Dudley, chair of the Bretton Woods Committee and former president of Federal Reserve Bank of New York and vice-chairman of the Federal Open Market Committee from 2009-18, joins Mark Sobel, US chairman of OMFIF, to discuss the June FOMC meeting.
ON DEMAND How China is balancing geopolitics and economics Dennis Shen, macroeconomist and director of sovereign ratings at Scope Ratings, speaks with Taylor Pearce, economist at OMFIF, about China’s economic relations with the US and Europe in the global macroeconomic and geopolitical landscape.
Data: Towards a new age of economic enlightenment As regulators and policy-makers work to balance protection and innovation in their evolving frameworks, this landmark report explores the use of data and its potentially transformative impact on developments in the global economy, financial services, the business community and society as a whole.
