Economics class podcast: Kwasi Kwarteng’s market meltdown
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
fiscal policy, monetary policy, exchange rates
Click to listen to this podcast or read the transcript and then answer the questions:
Kwasi Kwarteng’s market meltdown
According to recent polls, how far are the Tories behind Labour?
Explain why the markets were so ‘spooked’ by the chancellor’s mini-Budget
On Monday 26 September2022, the pound fell to its lowest rate ever, £1:$1.035, compared with £1:$4.80 at the end of the war. Using a diagram, analyse the causes of the record low exchange rate
‘It’s mostly fiscal!’ What was highly unusual about the IMF’s intervention?
Wednesday — the Bank of England’s intervention in the pension market. Explain the vicious circle that ensued around the selling of government bonds
Why does it look as though the Bank of England’s independence has been compromised?
Gavin Clarke, Emmanuel College
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