MPC Going Beyond Remits of Policy: Former Member Sentance

The transcript discusses the Bank of England's monetary policy decisions post-Brexit, highlighting dissenting views on quantitative easing (QE) and the challenges of balancing inflation and growth. It critiques the limits of monetary policy in addressing political and economic shocks, emphasizing the need for broader economic strategies. The discussion also covers the impact of low interest rates and the debate over expanding the asset purchase program, with some MPC members opposing further QE due to potential negative effects on savers and pension funds.

What is one of the main challenges faced by the MPC in their decision-making process?

• Reducing unemployment

• Expanding the housing market

• Balancing inflation and growth

• Increasing interest rates

According to the discussion, what is a limitation of monetary policy?

• It requires high interest rates

• It is only effective in the short term

• It always leads to inflation

• It cannot address political issues

What is the suggested focus for the government in response to Brexit's economic impact?

• Expanding the military budget

• Reducing public spending

• Developing a negotiation strategy with Europe

• Increasing taxes

What is the main concern about quantitative easing mentioned in the video?

• It increases unemployment

• It creates problems for pension funds

• It reduces consumer spending

• It leads to higher taxes

Why do some MPC members oppose intervening in the corporate bond market?

• It benefits only large corporations

• The evidence for its necessity is lacking

• It leads to higher inflation

• It is too costly