Carney Says Monetary Policy Is Last Line of Defense

The video discusses the coordination of various committees responsible for macroprudential and monetary policies, focusing on financial and monetary stability. It highlights the role of monetary policy as a last line of defense for financial stability and the current economic situation in the UK, where debt is growing in line with the economy. The video also emphasizes the importance of targeted actions to address specific financial issues, allowing monetary policy to focus on returning inflation to target levels.

What is the ultimate objective supported by the different committees?

• Increased consumer spending

• Rapid economic growth

• Higher inflation rates

• Strong, sustainable, balanced growth

What is considered the last line of defense for financial stability issues?

• Trade policy

• Fiscal policy

• Monetary policy

• Environmental policy

What is the current trend of debt growth in the UK?

• Growing faster than the economy

• Growing slower than the economy

• Not growing at all

• Growing roughly in line with the economy

Which areas require vigilance according to the transcript?

• Corporate debt

• Consumer credit

• Export levels

• Government spending

What is the role of monetary policy in the context of financial stability?

• To increase consumer spending

• To focus on returning inflation to target

• To reduce interest rates

• To promote international trade