Supply matters
· Andrew Bailey, Governor of the Bank of England (United Kingdom)
Summary written by Dark Majestic in its own words · topics: monetary policy and interest rates, inflation and price stability
AB · Andrew Bailey Wiki · Bank of England WikiSupply mattersContextLecture at the London School of Economics; the Bank of England keeps inflation low and studies how supply shocks drove recent inflation.
Why it mattersBailey explains why supply constraints matter for policy after raising rates to 4.25%.
Problems raised- The UK economy faced macroeconomic upheaval.
- Shocks drove inflation away from target.
- Supply constraints matter.
Solutions proposed- Raise rates to 4.25%.
- Prevent persistent inflation.
- Take supply into account in monetary policy.
Read full speech on bis.org ↗More from Andrew Bailey · Bank of England · all speeches
More speeches by Andrew Bailey
Other leaders on monetary policy and interest rates
