The Economy
This section covers different aspects of the economy and the inflation process, building on the material in the Inflation and Inflation Outlook sections. It explains why we look at particular areas of the economy and why they are important. The Data section provides many of the statistics discussed under the various headings in this section.
The section is divided into four main parts. We start by looking at money and financial markets and then go on to consider demand and output, the labour market and, finally, costs and prices. In each part there are extracts from the minutes of the July 2001 MPC meeting to give teams a flavour of the data and considerations that influence policy decisions.
The different aspects of the economy are not independent of each other - everything in the economy is inter-related. But there is a great deal of material here so each member of the team might want to concentrate on a particular part. You should not feel that you have to be familiar with everything. The section is intended to be a comprehensive reference source for teams to use as they come across different issues and data. It will also help you to understand the minutes of the MPC meetings and the Bank of England's Inflation Report where there are further data and charts.
©2000-2008 Bank of England.
