Interview with Andrew Bailey, Governor of the Bank of England, on Q.E.

The video discusses the economic implications of trade deals, emphasizing the short-term adjustment costs and potential long-term effects on the economy. It highlights the importance of securing a trade deal to prevent economic shrinkage. The role of the Bank of England in facilitating government borrowing through monetary policy is explained, noting its impact on borrowing costs and liquidity. The discussion also touches on the government's response to economic shocks and the importance of active economic policy in mitigating the effects of crises.

What is a potential short-term effect of a new trade deal on the economy?

• Increased economic growth

• Higher inflation rates

• Reduced economic activity

• Lower unemployment rates

Why is it crucial for businesses that a trade deal is secured?

• To reduce inflation

• To lower interest rates

• To increase government revenue

• To prevent further economic shrinkage

How does the Bank of England support government borrowing during a crisis?

• By increasing taxes

• By reducing public spending

• By keeping borrowing costs low

• By selling government assets

What is one of the roles of printing money according to the Bank of England?

• To increase inflation

• To provide insurance for government bonds

• To decrease public debt

• To raise interest rates

What does the IMF report suggest about the UK's economic policy?

• It has been inactive

• It has been overly cautious

• It has been very active

• It has been ineffective