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

The transcript discusses the roles of the MPC, PRA, and FPC in managing the economy, highlighting the resilience of the banking system amidst economic challenges. It explores the interplay between monetary and fiscal policies, emphasizing the positive effects of monetary policy on government borrowing and the broader economy.

What is the primary focus of the Monetary Policy Committee (MPC) as discussed in the video?

• Regulating bank risks

• Pushing money into the economy

• Stress testing the banking system

• Implementing fiscal policies

How does the Financial Policy Committee (FPC) contribute to the banking system?

• By providing economic stimulus

• By setting interest rates

• By stress testing the banking system

• By regulating fiscal policies

What is the government's role in the economic stimulus as mentioned in the video?

• Increasing taxes

• Reducing interest rates

• Delivering extra stimulus through fiscal policy

• Cutting government spending

What potential effect does stopping QE have on government finances?

• It reduces inflation

• It causes destabilizing effects

• It stabilizes the economy

• It increases government revenue

How does monetary policy affect borrowing costs according to the video?

• It increases borrowing costs for everyone

• It reduces borrowing costs for the government and others

• It has no impact on borrowing costs

• It only affects corporate borrowing costs