Ben Bernanke to Head Review of Bank of England’s Financial Forecasting

July 28 (UPI) — The Bank of England recently announced that former Federal Reserve Chairman Ben Bernanke, who received the Nobel Prize in economics last year, will lead a comprehensive review of the bank’s forecasting and related processes. The review aims to develop and strengthen the bank’s support for the Monetary Policy Committee’s approach to forecasting and monetary policymaking, with assistance from the bank’s Independent Evaluation Office.

This review will assess the forecast and evaluate the procedures and analysis that support the MPC’s deliberations and decision-making. Andrew Bailey, the governor of the Bank of England, expressed confidence in Bernanke’s ability to lead this review, stating, “Dr. Bernanke is a renowned and award-winning economist whose distinguished career makes him the ideal person to lead this review.”

Recognizing the significant uncertainty faced by the U.K. economy due to unpredictable shocks, Bailey emphasized the need for adaptation in their processes. He said, “The review will allow us to take a step back and reflect on where our processes need to adapt to a world in which we increasingly face significant uncertainty.”

Bernanke, renowned for his expertise in economic forecasting, highlighted the importance of reviewing the design and use of forecasts in policymaking, especially in the face of major economic shocks. He expressed his enthusiasm for leading this work for the bank, stating, “So, I am delighted to be leading this work for the bank.”

Bernanke, who previously served as the Chairman of the Federal Reserve under Presidents George W. Bush and Barack Obama, won the Nobel Prize in 2022 for his studies on preventing widespread bank collapses. He was employed at the Brookings Institute before taking up this new role with the Bank of England.