Home > Bank of England, Crazy Loons, Monetary Policy > Guardian Headlines You Didn’t Read Today, Spencer Dale Edition

Guardian Headlines You Didn’t Read Today, Spencer Dale Edition

“Crazy Central Banker Neuters Growth With Weird Obsession Over Inflation”

Reuters reports:

“More asset purchases by the Bank of England may not be warranted even if Britain’s economy continues to struggle, and the bank should keep its focus on bringing down inflation, its chief economist said on Wednesday.”

Warning: Watching this CNBC video interview (headline: “UK Economy on the Mend”) with the Bank of England Chief Inflation Nutter Economist may seriously damage your health.

Fiscal stimulus?  Good luck with that.  A high and stable level of employment?  Good luck with that.  The lunatics are running the asylum.

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  1. asdasdasd
    May 30, 2012 at 22:32

    I know, what is wrong with them, is Merv insane? Is he just trying to prove that he can crush inflation because the press was whining at him?

    According to the BoE the 3.5 year RPI forward breakevens have fallen from 2.33% on 2/5/12 to 1.91% yesterday. That’s 1-1.6% CPI, heck of a job Merv! Just what is needed in the recovery from a ‘debt crisis’ , below target expected inflation and 0.6% nominal wage growth.

    It was clearly a mistake not to expand QE at the last MPC meeting, if they continue to passively tighten monetary policy at the next, well, actually given that the inflation targeting is completely FUBAR at present it probably wouldn’t have made much odds.

    Either way it’s incomprehensible to me that the press does not understand this, it’s really not complex. The UK is in a depression because Merv wants to prove something to bankers and his critics.

    I suppose if we had GDP indexed bonds and NGDP targeting the forecast, we could do away with most of the BoE, the MPC and interest rate decisions. We’d have little in the way of financial crises, and hence Fleet street would have nothing to put in their papers.

    Why is there no debate about the inflation target? The Coalition could change it so easily, they clearly know about it. Is Osborne just determined to get eviscerated at the next election?

    I’m starting to think the only sensible choice is emigration.

  2. May 31, 2012 at 16:03

    I’m with you all the way. Better to stay and fight the rot, asd :)

  3. David Gilchrist
    May 31, 2012 at 20:03

    Given that our Central Bankers are crazy, given that the head crazy is due to be replaced next year, and given that the list of possibles that I have seen are just a load of apparatchiks and/or proven failures, how about starting a campaign to get someone competent in the job?

    My choice, for what it’s worth (i.e. bugger all) is Lars Svensson.

  4. May 31, 2012 at 23:16

    I might never recover from the disappointment of the inevitable failure of such a campaign, David. Getting my hopes up as high as a Governor Svensson, only to get Governor Tucker… it would be a near-fatal blow.

    Svensson would be a perfect candidate for Governor since the MPC basically use his methodology of “targeting the forecast”, and it would be a natural career progression from the Riksbank. But why settle for Svensson if we could get Sumner?

  1. June 1, 2012 at 09:59
  2. July 6, 2012 at 11:55
  3. July 25, 2012 at 14:38
  4. October 10, 2012 at 16:16
  5. October 11, 2012 at 09:40

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