BoE’s Tenreyro highlights divergence in UK and US policies
US focused on protecting incomes, while UK protected jobs, MPC member notes
The US and UK took divergent paths when using fiscal policy to fight the economic impact of the Covid-19 pandemic, leading to different economic dynamics, the Bank of England’s Silvana Tenreyro said in recent remarks.
The US focused on protecting incomes but allowed unemployment to rise, while the UK focused on job retention but not income protection, the monetary policy committee (MPC) member told a conference organised by the San Francisco Fed.
The UK government sought to keep workers in
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