In the News
Sterling's value as a macro shock absorber
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
19th October 2016
Is the almost twenty per cent depreciation in the sterling effective exchange rate index a significant shock absorber for the British economy? MPC member Ben Broadbent (formerly of Goldman Sachs) clearly thinks so as quoted in this BBC news article.
I held a revision webinar on Revision Webinar: External Shocks and Macro Policies which you can find here and I referenced floating exchange rates as a useful adjustment device for countries exposed to both demand and supply side shock events.
You might also like
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
John Van Reenen on Austerity
11th March 2015
Inflation and Interest Rates - Why 2015 is not 1975
18th August 2015
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
How should the BBC present economic data?
26th December 2015
The Pattern of UK Trade
Topic Videos
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Egypt Economic Crisis - IMF agrees a $12 billion loan
12th November 2016
Economic Importance of Infrastructure
Topic Videos
Fiscal Policy in the UK - Key Facts in 2018
Topic Videos
Supply and Demand - Clear The Deck Key Term Knowledge Activity
Quizzes & Activities