What is the most effective boost for the UK economy? This is the question Rene Defossez, fixed-income strategist at Natixis, posed in a recent column for Investment Week. In the article, he explores the effectiveness of the Bank of England’s current monetary policy, exploring the notion that by ‘unravelling’ inflation targeting in favour of stimulating growth, the BoE is risking its credibility. Perhaps, Defossez argues, putting pressure on fiscal policy would be a more fruitful alternative for the economy in the long-term.
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