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A rise in growth above 1.5% in 2020 and 2021 would be enough for the economy to begin overheating
Via Graham Watson
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Rescooped by Bruce Fellowes from Macroeconomics: UK economy, IB Economics |
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Via Graham Watson
One of the consequences of the announcement of the Monetary Policy Committee's interest rate decision and the publication of the Inflation Report was that the Bank revealed that there might have to be more frequent interest rate rises in the coming years.
The thing I found fascinating about this was the concern that growth above 1.5% was synonymous with 'overheating'. When I started teaching more than 25 years ago, this would have seemed to be below the trend rate of growth. Is that no longer the case today, and what are the macroeconomic consequences of this?