The FT has noted:
The Bank of England's chief economist has opened the door to a further cut in UK interest rates if low inflation persists, expressing a dovish view in contrast with the majority of the Monetary Policy Committee.
Andy Haldane is right that the Bank needs to do much more for the UK economy than it is at present.
He's wrong about rate cuts though, in my opinion. There is a limit to how far monetary policy can be pushed.
What we really need is green quantitative easing , of course.
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Can recommend Kynaston’s book on the City of London. While QE has changed everything the issue of what role the Bank should play outside of the Square mile has been hotly debated since the days of Montagu Norman..!
If it wasn’t Keynes, it was a Keynesian who remarked that, in times of austerity, reducing the interest rate was analagous to pushing a piece of string.
Osborne’s only solution seems to be “push it harder, get more people to push!”
The stupid thing is that we (the people) had a bank. We could’ve done something with it. George didn’t like that idea.