Is BOE's Credit Availability a Good Tool to Use?

The video discusses the importance of liquidity in financial markets during crises, highlighting measures taken by Europe and the UK. It examines the role of monetary policy, particularly interest rate cuts, and their limited impact on the FX channel. The distinction between market uncertainty and ambiguity is explored, emphasizing the need for preemptive liquidity measures. The UK's structural issues, such as the current account deficit and the gilt market, are analyzed, with a focus on the impact of currency valuation on bond attractiveness.

What measures are being taken to ensure liquidity in the markets during a crisis?

How does the Monetary Policy Committee's meeting relate to the supply of credit?

What is the significance of cutting the Bank rate in the current economic context?

What are the implications of a current account deficit on the UK economy?

Discuss the relationship between currency value and the attractiveness of gilt bonds.