Part 4/9:
Mann’s change in perspective is emblematic of the broader reassessment taking place within the Bank of England. Acknowledging the persistent difficulties in the economy has led to more aggressive policy responses, as the realities of rising unemployment and contracting economic output cannot be ignored.
Economic Reality: The Forgotten Growth
As the UK grapples with rising unemployment and an economy that is not recovering as expected, it becomes clear that the narrative of a simple slowdown followed by recovery has failed. Historical data reveals that GDP experienced notable downturns and even technical recessions, revealing the fragility of the economic situation.