UK NGDP Rumour Mill Churning Fast
You can blog for months about UK nominal GDP targeting at a leisurely pace… and then suddenly it’s hard to keep up with the news cycle. This just in from the Daily Telegraph:
The Daily Telegraph understands that senior Government figures are privately pressing the George Osborne, Chancellor to consider giving the Bank a new target of increasing the size of the economy.
“When you look at the state of the economy, [changing the Bank’s target] is certainly something we should be looking at,” one senior minister said.
Mr Osborne “is a pragmatist” who is willing to consider the arguments for and against changing the target, the minister added.
Mr Osborne is understood to have discussed Mr Carney’s views about inflation targeting with the Canadian before appointing him earlier this month. However, Treasury sources said the Chancellor has “no plans” to change the Bank’s instructions at the moment.
There’s specific use of the plural – “figures”, “ministers” in that article. Vince Cable and who else? Osborne’s second-in-command at HM Treasury is Vince’s fellow Liberal Democrat Danny Alexander, he’d be a likely candidate. We need more quotes on the record, please!