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Economics A Level (DONEEEEEEE)

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Question:

Why does the UK want Inflation at 2%? How does it achieve this [Summarise]

Author: eric_galvao



Answer:

-Bank of England sees 2% Inflation as Low and Stable enough. Above or Below may cause Problems -Governments will use Monetary Poliy, Fisical Policy or Supply-side Policy to acieve this -But trade offs may have to be made between Inflation and the other Economic objections. Monetarists believe bringing Inflation down in the short term helps the Govenrment in the long term for the other Objectives


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