Target Two Point Zero is an interest rate challenge in the UK set by the Bank of England and The Times. An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring his consumption, by lending to the borrower. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... The Times is a national newspaper published daily in the United Kingdom since 1785, and under its current name since 1788. ...

The Challenge

Target Two invites students aged 16 to 18 to take on the role of the Monetary Policy Committee to analyse current economic conditions in the UK and the outlook for inflation. Teams of four students must create a formal presentation that is delivered to a panel of judges from the Bank of England. The presentation must conclude with a recommendation on exactly what interest rate the team would set in order to achieve the UK government's inflation target of 2.0% CPI. The Monetary Policy Committee (MPC) is a committee of the Bank of England, which meets every month to decide the official interest rate in the United Kingdom. ... CPI may stand for: Center for Public Integrity Central Port Injection, see fuel injection Centre Permanent Informatique Communist Party of India Congrès paléoethnologique international Consumer price index Cour pénale internationale This is a disambiguation page — a navigational aid which lists other pages that might otherwise share...

Following the initial presentation, which lasts a maximum of 15 minutes, the judges have the opportunity to ask questions about what has been said. They might ask the students to justify or clarify certain aspects of their interpretation of the economic conditions.

Structure of the Competition

The Challenge has three identical rounds: regional heats, area finals and the national final. There is a sufficient time lapse between rounds to compel teams to change and update their presentation to take into account of new economic statistics, or the MPC’s own interest rate decisions. MPC stands for: Model Products Corporation A manufacturer (defunct)of styrene plastic model kits from the mid 60s to the late 80s. ...

See also

• Monetary Policy
• Interest rate

Monetary policy is the government or central bank process of managing money supply to achieve specific goals—such as constraining inflation, maintaining an exchange rate, achieving full employment or economic growth. ... An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring his consumption, by lending to the borrower. ...

External links

• http://www.bankofengland.co.uk/education/targettwopointzero/index.htm
• http://business.timesonline.co.uk/section/0,,10529,00.html