Seeking Brexit Calm From Boris Johnson and MPC

The transcript discusses the economic and political turmoil following Brexit, highlighting the need for calm and unity among economic leaders. It emphasizes the role of the Monetary Policy Committee (MPC) in ensuring stability and debates potential monetary policy responses, including interest rate adjustments and emergency measures. The discussion also touches on the challenges of low interest rates and the importance of strategic planning to mitigate uncertainty shocks.

What was the main issue highlighted in the first section regarding the Brexit vote?

• The economy was stable and unaffected.

• Boris Johnson had a clear plan for Brexit.

• There was a lack of planning by the MPC and Treasury.

• The market was well-prepared for the outcome.

What do Danny Blanchflower and Andrew agree on during economic crises?

• Ignoring market reactions.

• Increasing interest rates immediately.

• Implementing drastic policy changes.

• The need for stability.

What is the first move suggested for the MPC in response to Brexit?

• To raise interest rates immediately.

• To have an emergency meeting and reassess forecasts.

• To ignore the market turmoil.

• To implement quantitative easing immediately.

Why might a quick change in interest rates not be effective according to the third section?

• It could add to the feeling of panic.

• Interest rates are already very high.

• There is no need for any monetary policy changes.

• The economy is too stable.

What is the concern about the current low interest rates?

• They limit the effectiveness of monetary policy.

• They have no impact on the market.

• They provide ample room for further cuts.

• They are too high to impact the economy.