UK researchers propose 3% inflation target and negative rates
A new report has proposed raising the UK’s inflation target to 3% and permitting the Bank of England to set negative interest rates. The paper comes out just after the latest headline inflation figures, which show progress towards disinflation has stalled.
The proposals form part of a a new paper, Built to last: Towards a sustainable macroeconomic policy framework for the UK, by Simon Pittaway and James Smith. It was published jointly by the Resolution Foundation, an economics-focused think
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