I talked about inflation, the Bank of England, interest rates and more with Owen Jones yesterday.
Rather annoyingly, I can't embed this, but you can find the YouTube here.
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In your YouTube interview with Owen Jones you used the term “transmission mechanisms” in connection with inflation. Very obviously the one thing missing in the UK is the politicians both Conservative and Labour facilitating an open debate about these transmission mechanisms and especially the gorilla in the closet Brexit. Certainly, Gordon Brown was either silly (or deliberately calculating) not to have recognised that giving the Bank of England independence allowed the politicians to close down the debate rather than allow a free and open discussion particularly in regard to using bank rate as an economy regulator.
May I say that it was an eloquent 45 minutes? Not a great fan of aural learning, nor of Owen Jones’ verbosity, I found my attention held throughout.
I know I am supposed to make some learned comment here, but I’m trying to praise those people who help me, instead of leaving it to a “Like”. We don’t do it enough.
Thank you for taking the time.
Thanks!
I don’t nomally listen to stuff while I’m working away, but I really enjoyed that.
Just a quick note on energy prices / inflation. The UK applies it’s energy discounts in a very lumpy fashion.
From Scottish Power:
‘For the period 1st July – 30th September 2023, the energy price cap will be set at an annual level of £2,074 (for a dual fuel typical household* paying by Direct Debit), a reduction of £1,206 from the current level of £3,280, reflecting recent falls in wholesale energy prices’
A 36% decrease (and from what I read bills are expected to be below the cap). So July’s inflation figure is the important one.
Let’s wait and see eh Mr Baily?
I notice that the BBC is no longer saying that “high interest rates will bring down inflation”, but say “Higher interest rates are intended to lower inflation”. https://www.bbc.co.uk/news/live/business-65977222 (summary)
“It comes after Mr Bailey, in a letter to the Chancellor following the rate rise announcement, said some shops might be “rebuilding” their profit margin by passing inflation costs to consumers via increased prices.”
Good job Richard. Next stop Russell Brand lol? With all those subscribers I wish he understood MMT
He is very definitely off the rails
I’m reminded of the consequences of the Irish Potato famine in the 19th Century.
Nothing has changed has it?
It wasn’t a famine
It was a deliberate starvation
Food was available