Mills: Airport Indecision Has Been Damaging to U.K.

The transcript discusses the role of government in foreign exchange markets, particularly in the context of Brexit, and the need for an exchange rate target. It highlights the impact of foreign investments on the UK's industrialization. The conversation shifts to the debate over expanding airport capacity, focusing on the political challenges and the need for a decision between Heathrow and Gatwick. The discussion emphasizes the importance of overcoming local opposition to achieve a bipartisan policy on infrastructure development.

What is one argument for having a government with an exchange rate target?

• It allows the currency to float freely.

• It reduces the need for foreign exchange reserves.

• It provides a policy framework to stabilize the currency.

• It encourages foreign takeovers.

What is a major reason for the strong exchange rate mentioned in the transcript?

• Rising exports.

• Government intervention in the FX market.

• High levels of foreign investment in existing assets.

• Increased industrial production.

What is the main concern regarding the strong exchange rate?

• It causes deindustrialization.

• It leads to increased exports.

• It attracts more foreign tourists.

• It reduces the value of the currency.

What is a key issue in the debate over airport expansion?

• The indecision over choosing between Heathrow and Gatwick.

• The environmental impact of new airports.

• The lack of interest from the business community.

• The cost of building new airports.

What is a challenge in achieving a bipartisan policy on airport expansion?

• Lack of funding for airport projects.

• Opposition from residents near airports.

• Insufficient demand for air travel.

• Disagreement on the need for more airports.