I was excited to see new forecasting from the new Bank of England blog (H/T to Simon Wren-Lewis), but unfortunately (for me) the result is completely consistent with the information equilibrium model. Since they agree and future data will not help decide between them, I thought it wasn't worth the effort of digitizing the graph and combining the data properly. Therefore I did a cheesy graphical plot overlaid on the results from here:
I used the second scenario where ELB was set at 0.5%, but it largely doesn't matter which one is used.
Post a Comment
Comments are welcome. Please see the Moderation and comment policy.
Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.
Note: Only a member of this blog may post a comment.