I did not hear all of Mervyn King’s speech last night at the Mansion House. But I heard “asset sales” i.e. an end to quantitative easing and I heard “rate rises”.
And between those two lines I heard something else: “business as normal will be resumed as soon as possible”.
But that would be the City’s view of business as normal.
It’s not the view that says low long term interest rates are vital.
And that unemployment is central to economic policy as we go forward.
No, the rue of "sound money” over all else was coming out loud and clear.
Have we learned nothing?
Have we not appreciated that right now money is the least of our problems? And that deflation remains much more likely than inflation anyway.
Apparently not. And that’s why giving the Bank of England more powers worries me, a lot.
3 Responses to “Mervyn King: I heard recession”
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Why do you often delete perfectly reasonable comments that happen to disagree with your own opinions, particularly from those with more experience in the matters at hand?
@Alex
Because you’re a libertarian
Because you often start reasonably and become unreasonable
Because I have a duty to protect people from abuse
Because doing so seems to enhance the quality of debate here
And you never have
And because you’re such a coward you won’t even admit who you are
Enough reasons?
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