Mark Carney also criticised "far-right populists" and Brexiteers for having a "basic misunderstanding of what drives economies". Ms Truss, who became the shortest-serving prime minister in history when she resigned last year, has defended her policies since leaving office.
So Carney is responsible for something that happened 3 years after he left office? A problem which was really the fault of Truss? If the BOE (under Andrew Bailey) did not use quantitative easing at that point all pensions funds in the UK would have collapsed.
You may want to learn about economics and the role of the BOE. You clearly are listening only to a government’s media script, a government that has only one policy and that is to blame everyone else. There is a ton of stuff this government could do to lower inflation; it has done nothing except talk. There not been one single policy that has helped reduce inflation. Inflation is only lowering now because it is peaking out. The IMF stated last year that UK inflation would drop to 5% if policies at that time were left unchanged. We are above that 5% because you cannot predict things precisely.
As Haldane said, they printed too much for too long and kept rates too low.
As did the Fed and ECB…
Thanks for the condescending tone, I’m not listening to any government script. I listen to fund and asset managers, the bearish ones have been saying this for years.
The govt didn’t have to let the energy shock into the economy, France and others didn’t, so that is on them as they didn’t use policy to address it sufficiently.
Truss and Kwasi announcing unfunded tax cuts to bond whales sealed their fate.
Perhaps a chart of M2 explains it better. Carney left less headroom pre COVID.
The spike in 2016 was in response to Brexit. How is Brexit the fault of the BOE. Truss and Kwazi were after Carney left as was the energy crisis. You have conspiracy theoritus and absolutely no clue what you are talking about. You are latching onto threads with no substance.
France’s energy mix contains significantly less gas, when compared to the UK. They barely use any for electricity generation, see below, compared to the UK where gas is ~40% of our annual mix.
http://gridwatch.templar.co.uk/france/ https://www.mygridgb.co.uk/historicaldata/
That is why France was better insulated from a supply side gas shock.
It does help if you know what you are talking about.
As I said, the UK, along with the Netherlands and Belgium chose to let the energy shock into the economy and ameliorate with policy.
Other countries chose price caps to keep the energy shock out of the economy
https://www.bbc.co.uk/news/61522123
And EDF were able to cap prices at 4% because of their nuclear infrastructure which meant the cost of subsidising that 4% cap was considerably less than the equivalent would have been in the UK.
As always, context is important.
And Spain? And all the other price caps?
It’s almost like you’re not comprehending what I’m saying
https://app.electricitymaps.com/zone/ES
Spain uses a lot of gas, and prices have increased substantially. Between 2017 and 2019 the price per MWh hovered around €50, in 2020 it fell to €34. In 2021 it jumped to €112, and 2022 to €167.
The government started removing excess profits in 2021 - see here - and more recently are also subsidising the cost to generators where needed, see here. This was at the peak of Spain’s inflation, which reached 10% and then fell back to a more typical level, see here.
They have not been able to isolate themselves the same way France have, and are in a situation much closer to the UK with regards to reliance on gas, but through better economic management within Spain and across the eurozone now have lower inflation.
Edit: speeeeling.
Thanks for the random facts, what’s your point?
That context is important and ignoring it means you keep making easily falsifiable claims, like saying the energy crisis didn’t impact other countries. I have now both shown, and explained to, you why that is wrong, and so my work here is done.