For teachers of Business Economics to MBA students, like me, the current macro-economic situation in the UK gives plenty of material for class room discussions. The rising inflation we are observing are driven by higher import costs rather than by demand,
with lower growth and higher inflation as result. The public discussions among MPC members on what to do about this shows the conundrum they are facing: raise interest rates to counter inflation and you might slow down the sluggish economy further –
lower interest rates to increase growth and you might get even more inflation. No surprise that observers now focus on the profiles of individual MPC members, as recently the FT.