If you believe many of the comments in the broadcast media and from the City, Liz Truss is threatening to undermine the independence of the Bank of England and rip up a policy framework that has served us well for decades. One member of the Monetary Policy Committee (MPC), Michael Saunders, has already felt the need to warn her off.
But at best Truss’s critics have misunderstood what she is proposing. At worst, it is another example of kneejerk groupthink, and the resistance to any form of criticism or change, that too often surrounds discussion of the Bank of England.
Take what Truss has actually said. She pledged to “look again” at the Bank’s mandate “to make sure it is tough enough on inflation”. She added that she feared “some of the inflation has been caused by increases in the money supply”, and that she would “have a very clear…
View original post 551 more words
Utopia, you are standing in it! 
Recent Comments