Inflation rocketed to record levels throughout 2022, as the war in Ukraine pushed up the price of everyday necessities, including food, energy, and fuel. At the same time, wages have failed to keep pace with the change in everyday costs. War in Europe, political instability, increasing energy bills and cost of living have been an overarching story of the UK economy. In November 2022, the Consumer Price Index (CPI) showed prices were an average of 10.7% higher than they were in the same month a year previously. This figure showed the rate of price rises had slowed, as the CPI for October 2022 was 11.1% - the highest level for 41 years. (a) Discuss what monetary policy the Bank of England may use to control the rising inflation? (200 words max) (b) What are the problems/issues that the economy may face if the Bank of England uses conventional monetary policies to curb inflation? (100 words max)
Inflation rocketed to record levels throughout 2022, as the war in Ukraine pushed up the
(a) Discuss what monetary policy the Bank of England may use to control the rising inflation? (200 words max)
(b) What are the problems/issues that the economy may face if the Bank of England uses conventional
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