Wednesday, August 7, 2013

Wonk World Whacks Carney

The new Governor’s first big day at the office has gone down rather badly in wonk world: The IEA call it “the most dangerous development in UK monetary policy since the late 1980s.”:

“Monetary policy should be designed to ensure that we have stable prices. The level of unemployment is mainly determined by a range of factors such a labour market regulation, the benefits system, tax rates and so on. To try to use monetary policy to reduce unemployment when inflation is already above target is playing with fire and could lead us down the road that we followed in the 1970s. This move also calls into question the independence of the Monetary Policy Committee and the Bank of England’s ability to fulfil its statutory duties.” 

The Adam Smith Institute accused him of “fumbling in the dark”:

“Mark Carney had the leeway to make radical change here but he’s bottled it with baby steps… unemployment and inflation come from both aggregate demand (which the bank can control) and aggregate supply (which it has essentially no control over). Since neither of these numbers distinguish between changes in supply or demand, the Bank is still fumbling in the dark with its guesses over whether a change in inflation comes from demand (which means it should react) or supply (which means it shouldn’t). This means firms are still left guessing, and it means that uncertainty still reigns.”

Well that went well then.

Three More Years of 0.5% Interest Rate


Seen Elsewhere

UKIP on 23% With Survation | Mirror
UKIP Could Deal With Dave | Douglas Carswell
Tories Would Lower Benefit Cap | Telegraph
Bashir Twitter Meltdown | Mirror
Bashir is a Wrong’un | Norman Tebbit
Natalie Bennett Says it Should Not be a Crime to Belong to ISIS | Indy
LibDems Fifth in London | Standard
45 Mirror Group Stories Linked to Phone-Hacking | Press Gazette
Dave’s Diet | Speccie
Pink’O’Flynn | HuffPo
Trojan Horse Destroying British Values | Nick Wood


Find out more about PLMR AD-MS


George Galloway says of his former Respect candidate the UKIP MEP turned Tory, Amjad Bashir…

“Clearly Bashir does not have any real political principles or commitment, only naked opportunism and self-interest. He represents the revolving door principle in politics. The Tories are welcome to him because he will cause them embarrassment. Fortunately Respect was able to act before he did it to us.”


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