Joe Weisenthal

When the inflation started to explode in the immediate wake of the pandemic, really globally, one of the stories that people like to tell was that monetary policy would have weaker teeth or be less effective in the US, in part because so many American households are on 30-year fixed mortgages.

unlike in much of the other Western world or the Anglosphere world, where a lot of people's mortgages reset regularly.

Did that actually play out in practice?

Did BOE decisions transmit quicker to the real economy because fewer households see their mortgage bill reset on a regular basis?

Today it's dominated by two and five year.

Well, actually, when I think about the term supply side or supply side shocks, I think of

there are sort of two things, right?

There's a supply side shock.

You can't do anything.

Suddenly the price of electricity goes up everywhere and we call that a supply side shock and it's not great when that happens.

And then there is also the sort of like core productive capacity of a country and how productive industries are and what type of investment is there and so forth.

Even setting aside the shocks,

The trend seems to be negative in the UK in terms of business investment.

You hear about the last steel mill or whatever that's closing, or I read something recently, the UK might be importing salt for the first time or whatever.

In your, whether it's formerly annual, but now regular studies of the supply side of the UK economy, do you have a diagnosis or do you have an assessment about what is driving this sort of long-term deterioration?

Yeah, sustained growth.

Can't reverse Brexit.

I know in the U.S., there is an entire art to asking a monetary policy setter a question about fiscal policy because you have to do it very delicately.

Otherwise, they might faint over in their chair if they're presented with something outside their remit.

I don't know what exactly the norms are here about how we're supposed to phrase such questions to elicit some sort of answer.