Search Results for: inflation target

Folks.  I found myself in a tricky position when I arrived.  The bosses in Whitehall were really taken with this thing about keeping interest rates lower for longer, and, frankly, since there was no way they could loosen fiscal policy, … Continue reading →

This post is prompted by an exchange on twitter with Noah Smith [which you can see here] about why some people worry about the effects of QE on central bank solvency and eventually the price level. In short, the argument … Continue reading →

The Bank of England has been trying to clarify what it was doing when it launched its policy of forward guidance, committing not to think about tightening monetary policy until unemployment fell to 7% (provided….).  The fog is lifting somewhat, … Continue reading →

Notice two arguments in George Osborne’s ‘mission accomplished’ speech. 1.  After several years of declining or stagnant output, we at last have evidence of  moderate growth in official data and other positive, survey indicators.  This demonstrates that those that argued … Continue reading →

The MPC will shortly publish its August inflation forecast, and its evaluation of the policy of ‘forward guidance’, commissioned back in March by the Treasury (an action I previously noted was tantamount to saying ‘how about looser monetary policy, folks?).  … Continue reading →

In the last year, the protracted weak activity data in the Eurozone, and in the UK, has emboldened those who thought that ‘austerity’ policies were misguided, and that think that a renewed fiscal expansion will help solve the problem.  I think … Continue reading →