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In charge of what? Unemployment and Inflation? The Government and the Central Bank (Monetary Authority) might conduct certain policies to try to control inflation and unemployment but in fact, it is the business cycle in the free market that actually would determine the level of inflation and unemployment. Sometimes, the government and monetary authorities might do something to try to control it but they do not succeed - some may say what is happening now shows the failure of the government to control both these economic variables.
As mentioned before, yes, some people are blaming the government for this (especially the opposition parties). However, there are other factors (which probably is more likely to be the cause) such as the external environment, the risk-taking / greed of financial institutions, the huge debt accumulated over the years (not just by this government but the previous governments), to name a few.
Are UK monetary authorities the ones who in charge of it all?
ReplyDeleteIn charge of what? Unemployment and Inflation? The Government and the Central Bank (Monetary Authority) might conduct certain policies to try to control inflation and unemployment but in fact, it is the business cycle in the free market that actually would determine the level of inflation and unemployment. Sometimes, the government and monetary authorities might do something to try to control it but they do not succeed - some may say what is happening now shows the failure of the government to control both these economic variables.
ReplyDeleteIn charge of failure to mitigate the effect of contemporary, I suppose, downward trend of the bussiness cycle.
ReplyDeleteAs mentioned before, yes, some people are blaming the government for this (especially the opposition parties). However, there are other factors (which probably is more likely to be the cause) such as the external environment, the risk-taking / greed of financial institutions, the huge debt accumulated over the years (not just by this government but the previous governments), to name a few.
ReplyDelete