CAN THE BANK OF ENGLAND INFLUENCE REAL GDP?
Yes. “A principal objective of any central bank is to safeguard the value of the currency in terms of what it will purchase. Rising prices – inflation – reduces the value of money. Monetary policy is directed to achieving this objective and providing a framework for non-inflationary economic growth. As in most other developed countries, monetary policy operates in the UK mainly through influencing the price of money – the interest rate.” http://www.bankofengland.co.uk/monetarypolicy/more.htm Anything that has to do with money, particularly interest rates, would influence real GDP.
