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Home > Education and Museum > The Monetary Policy Boat
 

The Monetary Policy Boat

Take the helm of the Bank of England’s monetary policy boat to set interest rates and quantitative easing to control inflation.

Your job is to keep the boat sailing at a steady speed in the same way that the Bank of England tries to keep inflation close to the government’s 2% target.

Changes in the weather either slow the boat down or speed it up.  These are like economic events that can push inflation away from the 2% target.  The effect of the weather on the boat’s speed varies – just as in the real economy, it’s hard to predict inflation.

Bon voyage, shipmates!
 

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