Haskel highlights: re recently voting for.......>

BOE: Haskel highlights: re recently voting for "more accommodative monetary

policy. As I have tried to set out...I am concerned about the economy "getting

stuck" and recovering only slowly and undershooting the inflation target."

- "As for the recovery, I would put weight on the logic that suggests that as a

behavioural response to the supply shock, cautious consumers, worried about

unemployment and health risks, will hold back the economy. In addition to that,

the heterogeneous response means each individual's economic fortunes depend

strongly on the general behaviour of other consumers in the economy in a way

that, without policy, may not be self-correcting."

- "It seems likely that such demand weakness will therefore drag on the economy

and hold back the recovery. The path of recovery crucially depends therefore on

the fear of infection, which in turn depends on the mix of public (e.g. track

and trace) and private (e.g. screens in shops) health measures undertaken. It

also depends on the fear, or realisation, of unemployment, as weak activity and

capacity constraints on the operation of surviving businesses, and insolvencies,

translate into a fall in the demand for labour."