Regime Change Rumour Mill: Osborne rejects NGDP Target
George Parker and Chris Giles report that Osborne’s economic adviser Rupert Harrison has failed to find enlightenment:
During his tour of Boston, New York and Washington, Mr Harrison is understood to have ruled out the radical option of changing the BoE’s remit to include a growth target based on nominal GDP – cash spending in the economy.
[The Treasury is] considering whether the existing 2 per cent inflation target gives sufficient flexibility or whether the Treasury could tell the Bank to target that rate over a longer horizon to help growth.
Game over? It looks that way. “Sufficient flexibility“? Give me a break. The cult of the central banker lives on, our chosen experts carefully seeking the right path to nominal salvation. In other FT news:
BoE governor says currency is now ‘properly valued’
Good luck, everybody. Blogging will be light for a while.