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Economics Students Offer Advice to Bank of England!
05 December 2014
During this term, the Year 13 Economists have been working hard for the prestigious annual Bank of England 'Target 2.0' competition.
The competition required the team to act as the Monetary Policy Committee and decide whether to change interest rates and to then consider the effects of their decision on different aspects of the economy such as inflation, unemployment, international trade and overall economic growth. They also had to decide whether to change the spending on asset purchases under the Asset Purchase Facility which currently stands at £375bn.
On the 28 November the students presented their recommendations to a panel of judges from the Bank of England and industry experts at Aston University's Business School. After much deliberation and research the team decided to raise the interest rate to 0.75% and to keep asset purchasing (QE) at £375 bn.
They produced a very convincing presentation. Their argument included analysis of the benefits of raising interests rates at this particular time, attesting that it would better our balance of payments deficit, it would help lessen the gap between the rich and the poor and, most importantly, boast overall economic growth by stimulating both saving and spending.
Once they had completed their presentation the judges then had the opportunity to question their decisions by asking them to explain their findings. The group confidently responded to the demanding questions leaving the judges very impressed with their economic knowledge and thorough understanding.
The results were published on the Bank of England website later that day and we are delighted that our girls were announced as the runners up out of the eight schools that were invited to attend.
Many congratulations to Harpreet Rai, Syra Kalirai, Abee England, Ellen Jones, Ruth Fox, Simran Dhaliwal and Jessica Wilson for their hard work and commitment to the competition.