Britain’s economy is ill positioned to endure the incremental shock of a “hard” departure from the EU trade zone. It was sliding into recession before the pandemic hit
Without a forecast, the Bank of England is without a clue about whether there will be inflation on March 29, or thereafter.
The monetary data from Japan and Britain suggest that there is core weakness in the underlying economy.
What smart economists learned in the 1970s will serve the BoE well when it responds to Brexit shocks.