LSE's Charles Bean on BOE Policy, U.K. Housing

The video discusses the tools available for monetary policy, such as interest rate cuts and quantitative easing, and their limitations. It highlights the potential need for fiscal policy adjustments by the government, especially in light of economic uncertainties following the referendum. The discussion also covers the impact of the referendum on economic indicators like asset prices, exchange rates, and business investments, emphasizing the need for careful observation of these factors to understand the full impact on the UK economy.

What is a potential risk of continually lowering the bank rate?

• Increased inflation

• Squeeze on bank profits

• Higher unemployment

• Rising interest rates

What is a concern when the central bank starts buying private assets?

• Political economy questions

• Decreased bank reserves

• Increased inflation

• Higher interest rates

What might the government consider if the economy slows due to the referendum?

• Increasing taxes

• Cutting public spending

• Implementing fiscal stimulus

• Raising interest rates

What was the immediate impact of the referendum on the UK economy?

• Increase in consumer spending

• Depreciation of sterling

• Growth in GDP

• Rise in business investment

Which economic indicator is crucial to watch for understanding the referendum's impact?

• Government spending

• Business investment

• Consumer spending

• Interest rates