Macroeconomics: UK economy, IB Economics

This Guardian editorial, in looking at the policy options seemingly available to any incoming government notes the intersect between monetary and fiscal policy, arguing that the Bank of England's role in determining the amount of liquidity in the economy via Quantitative Easing and Quantitative Tightening has largely gone under the radar, but will have a significant influence on what a prospective Labour government might be able to afford. 

A major change in monetary policy, marked with relatively little fuss: the Bank of England is starting to put Quantitative Easing into reverse, and instead of buying bonds and increasing liquidity in financial markets it's going to start selling them and reducing liquidity at the margin.

For the monetarists among you, this should be auspicious - and I hope you're able to appreciate why, with a little help from a very famous Milton Friedman quote perhaps?

For the rest of us, we might want to think about the effects of this move on the macroeconomy, starting with AD-AS analysis and reflecting upon how that might help us understand the likely effects upon macroeconomic objectives. 

Is the collapse of Silicon Valley Bank a pre-cursor to another financial crisis? It would seem not, given the bank's purchase by HSBC Holdings this morning, but this article looks at why at a time of rising interest rates, there were already concerns about the ability of one or two banks to withstand the stresses that this implied.