The Governor of the Bank of England, Andrew Bailey, has received backlash for his remarks made at the Treasury select committee this week. He suggested that workers refrain from seeking pay raises, expressed concerns about potential global food price hikes, and admitted to feeling “helpless” in controlling inflation. These comments have been labeled as disconnected, fearmongering, and worrisome.
The Bank of England should not adopt a helpless stance towards inflation. One of its primary responsibilities is to maintain low and stable price increases. If it doesn’t believe it can fulfill this duty, individuals may question its purpose. Certainly, certain factors are beyond its control. However, it is insufficient to attribute all our economic challenges to the war in Ukraine or lockdown measures. Critics argue that a lack of diverse perspectives within the rate-setting committee has led to complacency regarding the consequences of extensive money-printing. Consequently, the Bank has been unable or unwilling to accurately assess the magnitude and duration of the inflation risk.
Given these circumstances, there is a strong case for further interest rate hikes, despite potential implications for government finances. Since the Bank has been accused of effectively monetizing government debt, implementing a series of rate increases could demonstrate its claimed independence.
Politicians, too, must hold the central bank more accountable. Many have lost interest in macroeconomics, disregarding the Bank’s ability to shape the lives of millions. The public should not blindly trust that central bankers are fulfilling their responsibilities. They are not the infallible “masters of the universe” they sometimes perceive themselves to be.
Reference
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
The Governor of the Bank of England, Andrew Bailey, has received backlash for his remarks made at the Treasury select committee this week. He suggested that workers refrain from seeking pay raises, expressed concerns about potential global food price hikes, and admitted to feeling “helpless” in controlling inflation. These comments have been labeled as disconnected, fearmongering, and worrisome.
The Bank of England should not adopt a helpless stance towards inflation. One of its primary responsibilities is to maintain low and stable price increases. If it doesn’t believe it can fulfill this duty, individuals may question its purpose. Certainly, certain factors are beyond its control. However, it is insufficient to attribute all our economic challenges to the war in Ukraine or lockdown measures. Critics argue that a lack of diverse perspectives within the rate-setting committee has led to complacency regarding the consequences of extensive money-printing. Consequently, the Bank has been unable or unwilling to accurately assess the magnitude and duration of the inflation risk.
Given these circumstances, there is a strong case for further interest rate hikes, despite potential implications for government finances. Since the Bank has been accused of effectively monetizing government debt, implementing a series of rate increases could demonstrate its claimed independence.
Politicians, too, must hold the central bank more accountable. Many have lost interest in macroeconomics, disregarding the Bank’s ability to shape the lives of millions. The public should not blindly trust that central bankers are fulfilling their responsibilities. They are not the infallible “masters of the universe” they sometimes perceive themselves to be.