The Mpc and the UK Economy: Should We Fear the D-Words?

10 Pages Posted: 2 May 2005

See all articles by Charles Richard Bean

Charles Richard Bean

London School of Economics & Political Science (LSE) - Department of Economics; Bank of England

Abstract

In this speech, Charles Bean, Chief Economist, looks at two sources of risk to the economic outlook: those associated with deflation and debt. He notes that falling prices can reflect a variety of influences and need not indicate the onset of a deflationary spiral. As a result some recent commentators have overstated the threat of widespread deflation. The accumulation of household debt presents a more immediate threat to the UK outlook, as increasing debt burdens potentially make some households more vulnerable to adverse shocks. That has implications for the successful pursuit of the inflation target.

Suggested Citation

Bean, Charles Richard and Bean, Charles Richard, The Mpc and the UK Economy: Should We Fear the D-Words?. Available at SSRN: https://ssrn.com/abstract=709007

Charles Richard Bean (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
R423A
London WC2A 2AE
United Kingdom
+44 0171-955-7291 (Phone)
+44 0171-955-7595 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
55
Abstract Views
765
Rank
685,004
PlumX Metrics