Bank of England: Does Higher Productivity Always Mean Lower Inflation? (Explained)

AI Economics Research Podcast · Aug 21, 2026 · 9m

This episode unpacks a recent Bank of England research paper, "Productivity and Inflation Dynamics," explaining in plain English why higher productivity doesn't always guarantee lower inflation. We delve into how the timing of demand and supply responses, alongside central bank policy, determines whether productivity growth fuels or dampens price pressures. Send your feedback or questions to feedback@econpod.org, and find the full paper at https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2026/productivity-and-inflation-dynamics.pdf. This episode explains a real academic paper…