Oh no a storm’s coming! No worries we can lower the interest rates! YAY! Because you know interest rates don’t mean anything tangible stemming from market activity and consumer preference. YAY! YAY! Never worry about boogymen of the markets again!
Yes I am serious…
http://www.bankofengland.co.uk/education/inflation/balloon/balloon.htm
Something’s wrong. I keep crashing into the ground.
Maybe the economy isn’t like a balloon?
(dumbest piece of garbage propaganda ever)
Did the BoE seriously just claim that inflation is entirely based on prices, and can be fixed with rate changes?
Damn, they really have reached the pinnacle of naivety. I wonder how the view is up there.
It’s so bad its funny
“Damn, they really have reached the pinnacle of naivety. I wonder how the view is up there.”
Not great; all they see are factories, carparks, schools, and the occasional cloud.
Nothing from Britain surprises me anymore.
Alright class. The Essay question for today is.
With the onslought of incoming ash from the Icelandic volcanic explosion, should the BOE Lower or Raise interest rates?
I tried that and just set the rate to the highest (19) for the entire time. The unemployment rate went past 20% in the last quarter of the game and never stopped going up and prices vice versa. So, according to the Federal Reserve, unemployment was 100% and everything was free before central banking was invented.
I tried that game. I hiked up the rates and unemployment rose (though I managed to get inflation to -3%, it seemed to refuse to go the full 95% recovery from 1913 that I wanted).
Apparently employment is based entirely around the Federal Reserve.
Icelandic Volcano
Increasing taxes has no effect on inflation.