Inflation is looking pretty grim and the outlook is getting worse with forecasts of RPI of 15% plus and talk of stagflation. So my question is IF we live in a traditional monetarist economy should the Bank increase rates and by how much, how quickly?
If anyone wishes to argue that we don't live in a monetarist economy please discuss that on another thread, there are plenty to choose from. This is only to discuss what should happen in an economy that functions as described by traditional monetary economics with government spending paid for by taxation or the issuing of debt, future generations paying for the debt of the current, money printing causing higher inflation etc.