BOE Independence Still Worth Defending, Says Turner

BOE Independence Still Worth Defending, Says Turner

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The transcript discusses the views of Charles Goodhart on central bank independence, highlighting potential conflicts between central banks and treasuries. It explores future economic policies, including the possibility of fiscal deficits financed by central banks, while maintaining independence. The effectiveness of central banks in achieving low inflation is acknowledged, but the need for broader objectives is emphasized. The transcript also critiques the reliance on inflation targeting before 2008, noting the unresolved global debt issue and the necessity of low interest rates.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did Mr. Charles Goodhart suggest about the future relationship between central banks and treasuries?

Central banks will lose all independence.

There will be no change in their relationship.

Central banks will become more powerful.

Treasuries and politicians will dominate.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one potential policy tool mentioned for dealing with a global economic downturn?

Increasing interest rates

Reducing government spending

Fiscal deficits financed by central bank money

Privatizing public assets

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What has been a significant achievement of central banks according to the transcript?

Eliminating public debt

Increasing employment rates

Maintaining low and stable inflation

Achieving high economic growth

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a major oversight in economic policy before 2008?

Focusing solely on inflation targeting

Ignoring technological advancements

Overestimating the role of fiscal policy

Underestimating the impact of globalization

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a consequence of maintaining very low interest rates?

Rapid economic growth

Creation of new economic problems

Increased public confidence

Higher inflation rates