The signals of 4 percent increase in the consumer prices in January trigger the Bank of England to tighten monetary policy as its official target is 2 percent. Thus, what would be the response and reasoning of monetary policy in the context of more competitive foreign economies when the main reason of rising inflation is the surging food and petrol costs as well as increased VAT?
Solutions to follow the target implicitly will not be successful unless the complex of actions that involves specific monetary and fiscal policies as well as particular provisions for financial institutions are coordinated. The strategies of sustainable economy growth should include the harmonized control of money supply, efficient allocation of capital and preventive financial stability measures depending on the economy state of the region. Moreover, only decisions made according to the aggregated statistical data but not inflexible commitments could stimulate competitiveness of less attractive industries and prevent from asset bobbles.
So, is it a right time to consider new decision making mechanisms for sustainable development?
About Me
- Asta Pravilonytė
- Every manager can call him or herself a good strategist if he or she only works within an environment that is favorable; however, it is only in times of stress that one truly learns what one's capabilities are!
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