I recorded this video interview last Friday. In it I discuss why Sunak will hit his inflation target, which is not very ambitious at all.
The video was made for a Vlog called 'Not the Andrew Marr Show'. It usually goes out, I think, on Sunday morning, when Andrew Marr also used to when on the BBC. He is now, of course, on LBC, and taking a rather different line on politics. I have been on his show on that station.
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Great interview Richard.
I’m no economist, just a keen amateur, but I struggle to see why seemingly intelligent people can’t see the bleedin’ obvious on inflation. All the key elements metals, shipping, wheat and gas are back to pre war and in some cases pre-Covid levels that will flush through to the real economy soon.
I think inflation may drop quicker that expected once the snowball is moving and catch the BoE out again (that won’t be hard though, a bowl of rice pudding could probably outwit Andrew Bailey)
Thanks
“I struggle to see why seemingly intelligent people can’t see the bleedin’ obvious on inflation”
1. Very few politicians, and indeed everyone else, have a sufficient economics education to understand how it works. Up until the summer, I was one of them.
2. Hidden agendas. The neoliberal/Tory agenda is to privatise as much as they can. By deliberately underfunding public spending, they will break public services .. and low and behold, be able to offer a fix from the private sector. Up until the summer, I would have thought this was one of those unlikely conspiracies (I hadn’t even heard of neo-liberal). Now I am sure of it.
To be frank, I think that having sufficient economics education is part of the problem rather than the cure. When the Bank of England, led by the economists who work for it, slavishly insists on following pure neoclassical economic theory, despite knowing the critical damage that will be caused to the main body of the population, we really need alternative economists (or bankers, call them what you will…) who are prepared to use their brains, think for themselves, and act in line with the empirical evidence, which is of course there. This is far from the first time the UK has been forced to swim in these waters.
Then maybe they need to learn critical thinking
Or just step outside the City walls