Navigating Economic Challenges: Central Banks in Focus

This chapter examines the current economic landscape for central banks, particularly in the UK, highlighting the struggle with inflation and slow growth amid rising interest rates. It explores theories surrounding the resilience of the economy and the critical balance policymakers must strike to manage inflation without triggering increased unemployment. Additionally, the chapter discusses how various factors, including fiscal policy and immigration, influence economic outcomes and the evolving strategies of central banks in response to these challenges.