IB level 6 HL Economics Macroeconomics Internal Assessment.
Received a level 6 by IB exam board.
Title of Article: Bank of England ‘to inject £100bn’ to fight second wave
INTERNATIONAL BACCALAUREATE ECONOMICS
INTERNAL ASSESSMENT COMMENTARY
Source of Article: The Telegraph
Title of Article: Bank of England ‘to inject £100bn’ to fight
second wave
Date Article Published: 31/10/2020
Date Commentary Written: 15/09/2020
Word count: 744
Commentary number: 2
Area (s) of syllabus: Macroeconomics
1
, Candidate code: jkj004
The Bank of England is poised to unveil a £100bn bond buying spree to fight the second Covid
wave as the country goes into another national lockdown.
Rate-setters will pump billions of pounds more into the economy by expanding the Bank’s
quantitative easing programme at its meeting on Thursday as fears of a double-dip
recession intensify, economists have predicted.
However, analysts at HSBC warned the vast bond-buying operations are “running out of room”,
increasing the odds of the Bank turning to controversial negative interest rates as a winter chill
descends on the economy.
The £100bn expected increase in bond purchases, also known as money printing, will lift the
Bank’s balance sheet of government and corporate debt to a record £845bn.
Live economic signals tracked by City forecasters indicate that the second wave has derailed
the UK’s recovery as tougher restrictions become more widespread.
A Jefferies gauge using job listings, road congestion, electricity usage and web traffic indicated
the UK economy started to retreat again last week as cases rocketed. Europe has seen economic
activity shrink for the past three weeks, its analysts said.
Ruth Gregory, economist at Capital Economics, warned another UK-wide lockdown would
“cause GDP to shrink again, perhaps significantly in the fourth quarter”.
Fears of a double dip downturn came as experts predicted the high street will be hit hardest this
Christmas by the new Covid measures. The national lockdown is expected to cause high street
footfall to drop by as much as 80pc, matching the decline at the peak of the crisis in April,
Springboard warned, with non-essential stores being forced to shut for a month.
Economies enjoyed a brisk recovery in the third quarter after record collapses in output during
the first half of 2020. However, ING said a double dip downturn across much of Europe is now
“unavoidable” as infections spiral out of control and countries including the UK return to
national lockdowns.
2
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur aliasofianos. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour 11,09 €. Vous n'êtes lié à rien après votre achat.