Economy 2030
Monetary policy
Macroeconomic policy

Wednesday 8 March 2023

A cost-of-living crisis

Inflation during an unprecedented terms of trade shock

Speech by MPC member Swati Dhingra

Britain has been buffeted by many different economic shocks in recent decades, but the most recent is a huge terms of trade deterioration following a spike in energy prices and disruption to global supply chains in the wake of the pandemic. This has given the UK the highest inflation in 40 years and prompted a cost-of-living crisis for British households.

How should policy makers think about the damaging impact of inflation on families and firms, responding without deepening any resulting economic downturn? And what are the trade-offs that monetary policy makers face in addressing the exceptional cost-of-living crisis that Britain is living through now?

To debate and answer these questions, the Resolution Foundation is hosting the first public discussion from Bank of England MPC member Dr. Swati Dhingra, as part of The Economy 2030 Inquiry with the LSE, funded by the Nuffield Foundation. Following a short presentation, Swati will take part in an audience Q&A, chaired by RF Chief Executive Torsten Bell.

The event will be open for people to physically attend, alongside being broadcast via YouTube and the Resolution Foundation website. Viewers will be able to submit questions to the panel before and during the event via Slido.