The UK is struggling to subdue a persistent inflation problem – leaving it an outlier
compared to other major economies. China has fallen into deflation, while in the US
and the eurozone there are signs that price pressures are moderating.” (1)
In July 2023 inflation rate fell slightly from 7.9 percent in June to 6.8. But then it
increased to 7.1 percent in August.
Examine why inflation in the UK is persistent and evaluate whether the
policies adopted by the Bank of England are effective. Use any relevant
economic theory and diagrams to support your arguments.
Your conclusion should clearly answer the question: What can the UK do about
its inflation problem?
In your answer you are required to refer to your Anderton textbook and the
following articles:
1. What can the UK do about its inflation problem?
https://www.ft.com/content/23d87d51-0a9a-485b-bce2-d0ba3b77210c
2. Bank of England embraces for bump in the road in fight against inflation –
https://www.ft.com/content/e3801211-c55c-49b5-8b12-e0c2b09bc03d
3. Monetary Policy Report – August 2023
https://www.bankofengland.co.uk/monetary-policy-report/2023/august-2023
4. Monetary Policy Report – September 2023 (to be published on 0/09/2023)
5. Why the climate crisis means higher prices –
https://neweconomics.org/2023/07/why-the-climate-crisis-means-higher-
prices
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In the essay, you must use the following three sources:
Your textbook
At least two of the sources the teacher recommended for each of the
titles
At least one other academic source
Additionally, you may use other academic sources, broadsheets, and reputable
data bases (we do encourage you to use databases).
Finally, when appropriate, you should use relevant diagrams. Although you
are not directly penalised for not using relevant diagrams, it is usually difficult
to show enough knowledge and application without using them in this
subject.
Remember:
Unacceptable sources (e.g., Wikipedia, Investopedia, Tutor2Tutor, blogs, revision
notes) will lose you marks for sources and research. If in doubt about the quality of
your sources, talk to you teacher.
1.4. All sources need to be cited in the text and referenced at the Reference
List at the end of each essay
