How successful have the British Government and the Bank of England been in running the British Economy over the last 2 years?

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ECONOMICS FOR GLOBAL BUSINESS

Question (Part A)
How successful have the British Government and the Bank of England been in running the British Economy over the last 2 years?

Introduction
This essay will demonstrate the measures of success that the British Government and Bank of England have delivered for the periods of 2010 and 2011. In order to achieve this outcome it was first necessary to briefly describe some background to how the Bank of England became so involved and how their input has had a direct affect on inflation and interest rates, which are two measurable indicators used in business and economics.
In terms of measuring success it was also necessary to compare and contrast other European countries economic
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A Bank of England report (www.bankofengland.co.uk ) into the effect of its first round of QE (that is, the £200bn worth of purchases made between March and November 2009) suggested that the measure had helped to increase the UK 's annual economic output by between 1.5% and 2%, indicating that the effects of the programme had been "economically significant".
At the same time interest rates in the UK rose from 1.8% to 3% over the 2 years of 2010 and 2011. In contrast to their European neighbours, the UK saw higher interest rates with the average across Europe across the 24months of 2010 and 2011 at approximately 1.2%. (trading economics 2013).

Conclusion
The conclusion drawn from the information obtained is that the Bank of England and the UK have been relatively successful if measured against other similar sized nations across Europe. True measurement though is done by looking at unemployment, Gross Domestic Product (GDP) growth, Bank of England interest rate, inflation rate, 3 month Treasury rate, public debt, and imports and exports, (economics watch 2013). In this case the UK has not done so well with higher inflation, freezes on public services, increased national debt and increased unemployment (economics watch 2013) – this therefore is more of the effects on the people of the UK as a result of

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