Here is the problem with the Bank of England:
as energy prices continue to remain elevated, the Monetary Policy Committee focusses on the inflationary pressure, and as it only has one policy lever looks to raise interest rates (although for now they may stay at the level they are);
however, squeezing inflation out of the system via recession (the BoE's underlying logic) compounds the difficulty industrial sectors have with the energy price... its nuts!
@ChrisMayLA6 “Twice the average of continental Europe and six times that of America…” is a little disingenuous.
Power for industry is not price capped like consumer rates, but still I’d like to see what industrial rates in Germany and California are (both of which have consumer rates higher the UK’s)
Yes, that's right; taxation controls the money supply by removing money from circulation in that model
That's a good Q.: the key issue is whether a Govt. would be willing to reject a significant part of the economic policy orthodoxy.... and there are significant social forces that would get in the way of that
Emeritus Prof. Christopher May
James T Monkey
Larry