Great Recession: Coppola's In Betweeners and Central Banks
This article was first published by me on Talkmarkets: http://www.talkmarkets.com/content/global-markets/great-recession-coppolas-in-betweeners-and-central-banks?post=116100&uid=4798
Frances Coppola is a blogger and economist in the UK. She has some great insights. She has made comments that monetary policy has not been really successful. In fact, she takes UK central banker, Mark Carney, to task over the defense of monetary policy in the United Kingdom.
While Carney and the UK government made mistakes, compared to other central banks it did better. Carney defends the Bank of England by saying:
"Simulations using the Bank’s main forecasting model suggest that the Bank’s monetary policy measures raised the level of GDP by around 8% relative to trend and lowered unemployment by 4 percentage points at their peak. Without this action, real wages would have been 8% lower, or around £2,000 per worker per year, and 1.5 million more people would have been out of work." It is pre…
Frances Coppola is a blogger and economist in the UK. She has some great insights. She has made comments that monetary policy has not been really successful. In fact, she takes UK central banker, Mark Carney, to task over the defense of monetary policy in the United Kingdom.
While Carney and the UK government made mistakes, compared to other central banks it did better. Carney defends the Bank of England by saying:
"Simulations using the Bank’s main forecasting model suggest that the Bank’s monetary policy measures raised the level of GDP by around 8% relative to trend and lowered unemployment by 4 percentage points at their peak. Without this action, real wages would have been 8% lower, or around £2,000 per worker per year, and 1.5 million more people would have been out of work." It is pre…
