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The next Governor of The Bank of England Mark Carney has raised the possibility that The MPC might target GNP rather than inflation.
Carney in one of his final speeches at The Bank of Canada, implies that Central banks should be prepared to ditch inflation targets in the event of sluggish growth and instead set themselves the task of raising national output.
It remains to be seen if this becomes a break with the 2% inflation target, which has been a feature of UK monetary policy over the last 15 years. Carney might be signalling a new approach to break the economic logjam.
It is worth considering the pros and cons of a shift in the focus of UK macroeconomic policy, the impact on expectations and economic behaviour.
On December 14th The BBC's Economics Correspondent, Stephanie Flanders weighs up the arguments and points out that critics point out that a change of target, might mean "that the Bank of England would be giving the mistaken impression that it can control economic growth when it can't." It could also mean that growth was being encouraged with little regard to the inflationary impact on the macroeconomy.
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Dates and Locations
AS & A2 Economics - Microeconomics: Markets & Market Failure (Unit 1), Business Economics (Unit 3)
- Monday 20 January 2014 - London (Stratford City)
- Tuesday 21 January 2014 - London (Fulham Broadway)
- Wednesday 22 January 2014 - Bristol (Cribbs Causeway)
- Thursday 23 January 2014 - Birmingham (Star City)
- Friday 24 January 2014 - Manchester (Salford Quays)
AS & A2 Economics - Macroeconomics: National & International Economy (Unit 2), Global/International Economy (Unit 4)
- Tuesday 25 March 2014 - London (Stratford City)
- Wednesday 26 March 2014 - London (Fulham Broadway)
- Thursday 27 March 2014 - Bristol (Cribbs Causeway)
- Friday 28 March 2014 - Birmingham (Star City)
- Tuesday 1 April 2014 - Gateshead (Metro Centre)
- Wednesday 2 April 2014 - Leeds (The Light)
- Thursday 3 April 2014 - Manchester (Salford Quays)
Post-Easter (AS Economics Units 1&2 Combined; Global/International Economy (Unit 4))
- Monday 28 April 2014 - London (Stratford City)
- Tuesday 29 April 2014 - London (Fulham Broadway)
- Wednesday 30 April 2014 - Bristol (Cribbs Causeway)
- Thursday 1 May 2014 - Birmingham (Star City)
- Friday 2 May 2014 - Manchester (Salford Quays)
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