Inflation will rise faster than expected

System

paso11 wrote: »

Can we stop treating central bankers as god who can manipulate the economy as they want to.

12 men and women sitting in a room each month cannot control an economy (although they tried to in Soviet Russia no doubt)

Indeed, recently on here I saw that Merv should have predicted tuition fees would increase and conduct some kind of monetary policy to make the difference in CPI back elsewhere.

It seems to be that Merv has simply become the target of the "bears" vitriol.

We've had "Sheeple", Gordon Brown, Kirsty and Phil, Banks, Fred Goodwin and god knows who/what else, and now, with few targets left, it's Merv's turn to be the one to blame. As long as someone is to blame, all will be well.

John_Pierpoint

Can we stop treating [STRIKE]central bankers[/STRIKE] politicians as gods who can manipulate the 50% of the economy they control as they see fit [STRIKE]want to.[/STRIKE]


30 odd ministers plucked from a list of 100 odd non entities plus 12 men and women sitting in a room each month cannot control a whole national economy, especially one with massive deficits, embedded as an insignificant part of a global economy (although they tried to in Soviet Russia no doubt).

http://en.wikipedia.org/wiki/Cameron_ministry

Most of these representatives are now drawn from an increasingly narrow strata of near professional politicians. They have little scientific training. Their objectives are 1. getting elected to power. 2 staying elected.
Most of them would do and say almost anything to achieve those two objectives.

Ah well, as Churchill observed:
Democracy is the worst form of government except all those other forms that have been tried from time to time.

John_Pierpoint

Joeskeppi wrote: »

Indeed, recently on here I saw that Merv should have predicted tuition fees would increase and conduct some kind of monetary policy to make the difference in CPI back elsewhere.

My son made the prediction that the greater majority of universities would go for the £9k maximum, the moment it was announced.
Perhaps he was more in touch with reality, than the Governor of the Bank of England?

System

And we've now gone full circle back to post 34.

Did your son also decide what form of monetary policy to embark on to "balance" inflation back to exactly 2% as a result of the rise in tuition fees?

Graham_Devon

John_Pierpoint wrote: »

My son made the prediction that the greater majority of universities would go for the £9k maximum, the moment it was announced.
Perhaps he was more in touch with reality, than the Governor of the Bank of England?

As did most of us. We shouldn't expect it of the BOE though.

ukcarper

Graham_Devon wrote: »

As did most of us. We shouldn't expect it of the BOE though.

What do you think they should have done increase interest rate because student loans increased.

ILW

ukcarper wrote: »

What do you think they should have done increase interest rate because student loans increased.

Or done less QE a few months ago possibly.

paso11

John_Pierpoint wrote: »

Can we stop treating [STRIKE]central bankers[/STRIKE] politicians as gods who can manipulate the 50% of the economy they control as they see fit [STRIKE]want to.[/STRIKE]


30 odd ministers plucked from a list of 100 odd non entities plus 12 men and women sitting in a room each month cannot control a whole national economy, especially one with massive deficits, embedded as an insignificant part of a global economy (although they tried to in Soviet Russia no doubt).

http://en.wikipedia.org/wiki/Cameron_ministry

Most of these representatives are now drawn from an increasingly narrow strata of near professional politicians. They have little scientific training. Their objectives are 1. getting elected to power. 2 staying elected.
Most of them would do and say almost anything to achieve those two objectives.

Ah well, as Churchill observed:
Democracy is the worst form of government except all those other forms that have been tried from time to time.

...and Mr Keynes gave them a "scientific" rationale for doing what they have always wanted to do-control and manipulate

Graham_Devon

ukcarper wrote: »

What do you think they should have done increase interest rate because student loans increased.

We have a lot of BOE apologists!

Account for the figures in the inflation reports. That's all I'm asking for. Though it seems you are quizzed every time you even murmur the fact that the inflation reports have been continually out of kinder with reality.

The school fee's was a known inflationary item. Yet it seems they didn't allow for it in their forward looking inflation report.

ukcarper

Graham_Devon wrote: »

We have a lot of BOE apologists!

Account for the figures in the inflation reports. That's all I'm asking for. Though it seems you are quizzed every time you even murmur the fact that the inflation reports have been continually out of kinder with reality.

The school fee's was a known inflationary item. Yet it seems they didn't allow for it in their forward looking inflation report.

The forecasts was 2.3% to 2.5% so was that extra 0.2% due to tuition fees or was that accounted for in the 2.5% and the extra 0.2% down to other things.