FT | Skygge-finansmin. Ed Balls mener Mervyn King er for politisk.

Ed Balls, Labours skygge-finansminister mener Bank of England sjef Mervyn King er for politisk. Her hjemme mener flere at Øystein Olsen er for lite politisk. Ed i Financial Times:

FT.com / UK / Economy & Trade – Balls warns King on Bank credibility: Ed Balls, shadow chancellor, has criticised Mervyn King, Bank of England governor, saying he should step out of the political arena and stop tying his credibility to the coalition’s ‘extreme’ deficit-reduction plans.

In an interview with the Financial Times, Mr Balls drew comparisons between Mr King’s stance and the backing lent by the Bank of England to the Treasury’s fiscal hawks during the Great Depression. ‘The last thing you ever want is for the Bank of England to be drawn into the political arena,’ said Mr Balls, one of the architects of Labour’s plan in the 1990s to give the Bank its independence. ‘Central bank governors have to be very careful about tying themselves too closely to fiscal strategies, especially when they are extreme and are making their job on monetary policy more complicated.’

Mr Balls believes that the governor is risking the Bank’s reputation by endorsing policies that could tip Britain into a double-dip recession and a period of mass unemployment….

Mr Balls said a double-dip recession was a possibility – although ‘not the most likely outcome’ – and argued that Mr King and the monetary policy committee have been right so far to maintain interest rates at 0.5 per cent.

The criticism of Mr King’s allegedly political role echoes that of a number of MPC members who aired their concerns about the ‘excessively political’ stance taken by the governor towards the coalition’s austerity programme…

Merket med ,
%d bloggere like this: