This was an incredible opportunity to interact with an immensely influential person. Dr Andrew Sentance directly contributed to the recovery of the UK economy after the Global Financial Crisis.
Dr Andrew Sentance served as a member of the Bank of England Monetary Policy Committee (MPC) from October 2006 to May 2011 – he served there during the Global Financial Crisis, and worked at British Airways for nine years as Chief Economist and Head of Environmental Affairs. He is a keen musician too, but for now, Dr Sentance is a Senior Advisor at Cambridge Econometrics.
Dr Sentance was able to give The Abbey and Reading Boys School a presentation on macroeconomics issues prevalent in the UK economy and on the global economy. He discussed loose monetary policy (an expansionary policy implemented to increase the money supply of an economy and stimulate economic growth). This is particularly interesting as it expands outside the curriculum and engages in the subject at a wider context- aiding a vast understanding of economics in general. I was lucky enough to ask Dr Sentance about what decisions he was able to make during his time in the MPC, and he explained how he helped make the decision of quantitative easing (when liquidity in the economy- ease of cash flow- is increased when the central bank purchases assets -e.g., government bonds- from the commercial banks), as a recovery method post Global Financial Crisis. Dr Sentance was on the team who voted to create £75 billion of digital money opposed to the other team who voted for £50 billion, both quantities largely underestimated the amount of money they had to create (as towards the end of post-financial crisis the Bank of England needed to create close to £200 billion), but his team was chosen and was a high risk decision, yet, was fortunately successful. So, Dr Sentance had a key role in the decision of quantitative easing of the bank of England post-global financial crisis, which was a significant factor that stimulated economic growth for the UK economy and hauled us out of the recession.
We will all take away Dr Sentance’s valuable lessons and advice and aspire to further endeavour in Economics: in curriculum and at a broader perspective.
–by Shriyaa Deepak Lower VI
