We are launching a competition for the last 3 weeks of term. It is based on the Bank of England's T2.0 Schools Initiative which Prior Park has participated in over the last few years.
It all sessions of Economics students in Teams of 3-4 will develop a 10 minute presentation making a predictions for the Bank of England's stance on Monetary Policy for the decision made on the first Thursday of July 2011 and indeed recommendations for medium term strategy in this area.
The Investigation should include a discussion of the major influences on the rate of inflation i.e.
1) TAILWINDS / UPSIDE RISK lifting inflationary pressures
2) HEADWINDS / DOWNSIDE RISK dampening inflationary pressure
these 2 areas can be investigated by considering at least 2 of the following 4 themes:
a) Money and Asset Prices
b) Demand
c) Output and Supply
d) Costs and Prices
e) International Economy
3) QE - Issues and suggestions
4) TARGET LEVEL AND MEASUREMENT - appropriateness
5) Primary research into measurement of inflation or some other aspect of inflation prospects such as confidence.
After a discussion of the above the team should be recommending:
1) An interest rate QE decision for July 2011
2) Suggested course for strategy over the remainder of 2011
Some starter links:
T2.0 Competition Homepage
webcast of 2009-2010 final
youtube BoE
Presentation Themes
1) + 2) Latest on the UK Economy
oecd survey May 2011
Latest Inflation Report
inflation report May 2011 (youtube)
MPC Decisions 2011
MPC Minutes 2011
3) QE
QE Explained (BoE)
QE Explained (youtube)
4) Target Level and measurement
inflation calculator (BoE)
Target Level Introduction
change in inflation target to 2.0% CPI (2004)
Debate: Should we raise the inflation target? (economist)
View from outside the MPC:
danny blanchflower lecture (university of exeter) may 2011
shadow mpc (lombard)
shadow mpc (ukeconomy)
shadow mpc (iea)
Background Links:
Open Letters (BoE - CoE)
Remit for the MPC (March 2011)
Independence for the BoE 1997 (CoE pdf)
world interest rates (telegraph)threats to the world economy in charts (telegraph)
