Fed to Cut Rates by Year's End as U.S. Slows: Capital Economics Bootle

The video discusses fiscal policy challenges in the UK and Europe, highlighting the potential resurgence of fiscal policy due to the ineffectiveness of monetary policy. It examines the influence of the US economy, which remains strong despite predictions of disaster, and considers how this might inspire changes in UK fiscal policy. The video also explores future economic predictions, including potential downturns and recessions, with a focus on the US and China.

What is one reason fiscal policy is gaining importance in the UK?

• Fiscal policy is a new concept.

• Monetary policy has been highly effective.

• The UK has no fiscal challenges.

• Monetary policy has proven to be less effective.

What has inspired a potential shift towards less austerity in the UK?

• The economic performance of China.

• The economic performance of the US under President Trump.

• The economic performance of Germany.

• The economic performance of Japan.

What is a debated fiscal policy change within the UK Conservative party?

• Increasing taxes.

• Maintaining current fiscal policies.

• Relaxing fiscal policy and cutting taxes.

• Implementing full-blown MMT.

What is a potential sign of an upcoming economic slowdown in the US?

• A booming housing market.

• Interest rate cuts by the Fed.

• Interest rate hikes by the Fed.

• Increased inflation rates.

What is the likelihood of a full-blown recession according to the discussion?

• Certain within the next 6 months.

• Dependent on China's economic performance.

• Unlikely due to lack of significant imbalances.

• Very high due to significant imbalances.