Your assignment is to prepare and submit a paper on success and failures of bank of england in tackling recent economic recession.

Your assignment is to prepare and submit a paper on success and failures of bank of england in tackling recent economic recession. Whilst late last year the mainstream institutions such as the OECD, IMF, and Treasury played safe producing forecasts for 2008 UK growth of 2% to 2.5% all pretty much in line with marginally below-trend growth” (Walayat, 2008)

Even most of the expert economists were failed to predict the current crisis and hence most of the organizations could not take any precautionary measures to tackle it. Inman (2009) has mentioned that ‘the unemployment in the UK may cross more than 3 million in near future itself as Britains manufacturers, retailers and service industries feel the full effects of the downturn (Inman, 2009). Moreover, the article UK economy to stay in doldrums says that “the UK economy will remain stuck in the doldrums this year with growth of 1% or less predicted in 2010, a leading forecaster has warned. The Ernst & Young ITEM Club, which uses the Treasury's economic model for its forecasts, said the immediate prospects for the UK were "dismal” (UK economy to stay in doldrums, n. d). The following figure illustrates the UK recession forecasts of 2009-2010.

It is evident from the above figure that the current recession seems to be the greatest of its kind in the UK’s history. Even though the UK government and Bank of England took many initiatives and measures, none of them seems to be working as expected and still UK economy continues to be in its downward growth trend. This paper analyses the recent recession in the UK, its impacts on various economic sectors in the UK and the initiatives taken by the Bank of England and the Government to tackle the current recession.

Real estate sector is one of the worst affected economic sectors in Britain as result of the recent recession. Construction activities were stopped almost fully because of the less demand in the real estate sector. The house prices have almost reached an all-time low in the recent past. According to Inman (2009), the house prices would fall another 15%, while Capital Economics said it could be as much as 20% as the cost of the average home headed for a 50% fall from its peak.