Posen: Pound's Fall Is Bigger Than What BOE Can Do

The video discusses the long-term economic trends in the UK, focusing on the decline of Sterling and its implications for British competitiveness and inflation. It examines the historical context of the UK's economic challenges and the potential future impact. The discussion also covers the role of the Bank of England, central bank independence, and the concept of contagion in global markets.

What was the expected impact of Brexit on the value of Sterling according to the discussion?

• Sterling would remain stable.

• Sterling would rise above 150.

• Sterling would drop below 120.

• Sterling would increase in value.

How does the Bank of England view the economic changes discussed?

• As a fundamental change to competitiveness.

• As a one-off shock.

• As a minor fluctuation.

• As an opportunity for growth.

What is the short-term economic benefit of a weaker pound?

• Increased imports.

• Boost in exports.

• Higher inflation.

• Improved productivity.

What is the main argument against the idea of contagion in the global economy?

• Contagion is beneficial for trade.

• Contagion is a myth.

• Contagion only affects developing countries.

• Contagion is overplayed by the media.

What is the overall impact of the economic situation on the UK and EU according to the discussion?

• A global economic shock.

• An opportunity for economic reform.

• A tragedy for the UK and a loss for the EU.

• A minor inconvenience.