Why the Bank of England’s independence is just a charade

Posted on

I argued on the Today programme on Radio 4 this morning that the Bank of England's independence from the Treasury is just a charade. It was always designed to appease the stupidity of the bond vigilantes. This is why. It is Section 19 of the Bank of England Act 1998:

Screen Shot 2015-08-24 at 09.16.08

To put it another way: they have independence so long as they do what the Treasury wants or independence can be suspended at any time.

And that is precisely why the Bank of England has always done what the Treasury wants, as I said. They really don't have much choice in the matter.

It's time we talked economic reality and not the silly games people have played in pursuit of neoliberalism.

Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:

You can subscribe to this blog's daily email here.

And if you would like to support this blog you can, here: