Inflation is a serious problem, and fiscal easing and fiscal tightening are "dead ends". How will the British government choose?

For Britain, the impact of the COVID-19 epidemic is not just? Three twists and turns? . This summer, prices in Britain are also worrying. Rising prices and worsening inflation have made the British government financially difficult. However, just as British Prime Minister Johnson announced that he would carry out a large-scale economic stimulus plan, the government's fiscal austerity and economic weakness during the COVID-19 epidemic remained one of the main factors that prevented them from obtaining parliamentary approval and enabling them to implement the new policy.

At the beginning of this year, the economic recession triggered by the COVID-19 epidemic had a great impact on Britain, with the unemployment rate soaring and the inflation rate soaring. However, a prominent problem under the impact of the COVID-19 epidemic is the inflation in Britain. At present, the inflation rate in Britain is 3.3%, which is 1.8% higher than the same period last year. This figure is the highest level since 2009, with 3.3% last year. Bank of England economist Robert? This is one of the biggest inflation problems we face, Brennan said. ? This price pressure is worsening. Since April, the inflation rate has risen to 1.6%, the highest level since 2009. The latest inflation forecast of the British government shows that the British consumer price will continue to rise in the next 12 months.

However, the balance between these two options may be the most difficult. Once a tight fiscal policy is adopted, the whole British economy will continue to decline in the next few years. But after the implementation of the large-scale economic stimulus plan, is it necessary to rebalance between loose and tight finances? Sandwiches? . Although most British voters agree that adopting a loose fiscal plan will help stimulate the economy, they also believe that a loose fiscal plan may have a major adverse impact on the economy.

Although the Bank of England pointed out in its report that the upper limit of large-scale quantitative easing is expected to be 2.3 trillion pounds. This is a rather conservative but challenging goal. However, if the Bank of England abandons this goal, it may support other options: by taking more radical fiscal measures, further cutting spending and consumption, so that prices will continue to rise.