There is widespread speculation that the Bank of England will cut interest rates as reaction to the UK economic performance that Johnson’s election timing conveniently hid from public view.
My reaction is, so what? The official rate is 0.75%. What is it going to be cut to? 0.5%, again? Well, whoopee. That’s going to change the square root of diddly squat in the real world.
It really is time that we faced reality. Green QE apart -and that is not possible because there are no green government bonds to buy - the role of the central banker envisioned by neoliberal economists is now over.
Monetary policy did not work.
Central banks did not deliver stability.
All they created was low inflation at the price of growing inequality that reflected precisely what they did not measure when coming up with their inflation claims.
There is now only one game left in town when it comes to economic policy. And that is fiscal policy. And there the Green New Deal is the answer to every question.
It’s time the media, commentators, the City, central bankers and politicians admitted it: tinkering with interest rates is as much yesterday’s news as VHS really is.
We need to move on. Central banks are not now going to save us from anything.