The MPC - snoozing whilst the UK burns

From Doug McWilliams at the CEBR comes a hard hitting comment piece about the out of touch and out-moded Monetary Policy Committee.

“The Governor of the Bank of England and both his deputies have had careers in academia and the civil service. The Permanent Secretary to the Treasury was chosen over the heads of more experienced candidates because he was the most left wing of the candidates. The Monetary Policy Committee now seems to be comprised of relative unknowns, when high quality monetary economists like Charles Goodhart would apparently have been willing to be reappointed when their terms ended. No wonder that the authorities give the impression of being a senior common room discussion group rather than people who understand how to handle the fragile confidence in financial institutions.”

Well said, the Australian Central Bank has given a clear lead by cutting interest rates by 1% in a surprise move. Fingers crossed for a further bout of policy activism this coming Thursday when the MPC votes. But don’t hold your breath!

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Unit 2 Macro: Cyclical and Structural Economic Issues Facing the UK [23 May 2012]
Unit 2 Macro: Positive and Negative Multiplier Effects [20 May 2012]
Unit 2 Macro: Revision Notes on Supply-side Policies [10 May 2012]
Unit 2 Macro: Monetary Policy and Inflation Glossary [5 May 2012]
Unit 2 Macro: Trade and Balance of Payments Glossary [5 May 2012]
Unit 2 Macro: Economic Cycle Glossary [5 May 2012]
Macro Revision: Putting Things in Context [29 Apr 2012]
Unit 2 Macro: Revision on Capital Investment [30 Mar 2012]
Unit 4 Macro: Evaluating 3 Years of Quantitative Easing [27 Mar 2012]
Unit 2 Macro: Policies to Drive Economic Recovery [9 Mar 2012]
Economies hooked on central bank stimulants? [4 Mar 2012]
Unit 4 Macro: King on the UK Economy [15 Feb 2012]
Martin Wolf on Global Shocks [10 Feb 2012]
Unit 4 Macro: Money, Debt and the New World Order [22 Jan 2012]
Unit 2 Macro: Factors Driving Business Investment [10 Jan 2012]
Hopes and Fears 2012 [10 Jan 2012]
Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
Where is the UK Economy? National Output [22 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
Unit 2 Macro: UK suffers a weak recovery [12 Oct 2011]
Why Is Macroeconomics Such A Mess? [11 Oct 2011]
Unit 2 Macro: Homework Assignment on Consumer Spending [3 Oct 2011]
Unit 4 Macro: Greek Economy at Default’s Door [25 Sep 2011]
UK Macro: Risks of a Double Dip Recession [12 Sep 2011]
Unit 4 Macro: Dangers of High Inflation [11 Jul 2011]
Unit 1 Micro: High price of petrol drains demand [9 Jul 2011]
A2 Macro: Consumer Spending [30 May 2011]
AS Macro Key Term: Deflation [24 May 2011]
AS Macro Key Term: Economic Recovery [23 May 2011]
AS Macro Key Term: Recession [23 May 2011]
AS Micro: What´s really behind the oil price rise? [10 May 2011]
Interest Rates Held at 0.5% once again [5 May 2011]
Macroeconomics revision - measuring Consumer Confidence [4 May 2011]
AS and A2 Macro Revision: Keynesian Economics [28 Apr 2011]
Rise in investment could kick start recovery [18 Apr 2011]
A2 Macro: Back to Roubini - a Year On! [11 Apr 2011]
AS Micro: Prices for New and Second Hand Cars [9 Apr 2011]
AS Macro Key Term: Double-Dip Recession [8 Apr 2011]
AS Macro Key Term: Jobless Recovery [8 Apr 2011]
AS Macro Key Term: Fiscal Austerity [6 Apr 2011]
AS Macro Key Term: Expansionary Monetary Policy [4 Apr 2011]
AS Macro Key Term: Bubble [4 Apr 2011]
Focus on Spain [16 Mar 2011]
Timetric: UK Consumption as a Share of GDP [12 Mar 2011]
AS Macro Revision: Investment Spending [12 Mar 2011]
EU Economics: Germany leads Euro Zone revival [25 Feb 2011]
Never Mind Plan B - Plan V needed for the UK Economy! [17 Feb 2011]
David Smith on Shifting Sands in the Global Economy [8 Feb 2011]
Choppy Times - An Economic Cycle Update and Resource Download [25 Jan 2011]
Analysis and evaluation practice of the monetary policy decision [13 Jan 2011]
Economics Q&A: What economic factors affect the demand for new cars? [9 Jan 2011]
A seasonal introduction to Consumption, Government Spending and Aggregate Demand. [22 Dec 2010]
CPI, RPI overshoot targets. [15 Dec 2010]
Test Cricket – better to make your debut at home [2 Dec 2010]
Video resources on consumption and saving [7 Oct 2010]
IMF signs off on UK’s fiscal plans [27 Sep 2010]
Fears rise for a double dip over the pond [25 Aug 2010]
King on the economy [11 Aug 2010]
Reasons to fear a jobless recovery [11 Aug 2010]
Consumer sentiment weakens as double dip looms [2 Aug 2010]
Where next for the UK economy? [23 Jul 2010]
Unit 2 Macro: How can supply-side policies help in a recession? [6 Jun 2010]
AS Macro Revision: Household Saving [30 May 2010]
AS Macro: Sterling and the UK Economy [29 May 2010]
Britain at risk of Japan-style deflation [25 May 2010]
The Financial Crisis and Beyond [6 May 2010]
AS Economics Revision - Managing the Economy [2 May 2010]
Issues and Prospects for the UK Economy in 2010 [25 Apr 2010]
Animal Spirits [25 Apr 2010]
Evolution of an Economic Recovery [13 Feb 2010]
4 Conditions needed for recovery [14 Jan 2010]
Cautious consumers fear tax rises [6 Jan 2010]
Rising savings ratio does not herald a return of thrift [23 Dec 2009]
Capital flight [17 Dec 2009]
Is monetary policy becoming less effective? [16 Dec 2009]
Inflation targets [15 Dec 2009]
Macroeconomic stability [14 Dec 2009]
Law and Morality in Economic Life [26 Nov 2009]
Stimulating Times [4 Nov 2009]
13% fall in household wealth will shape any 2010 rebound [25 Oct 2009]
Gloomy summary [13 Oct 2009]
Explaining the Paradox of Thrift [6 Oct 2009]
A2 Macro: Domestic and External Headwinds [11 Sep 2009]
Signs of a returning ‘feel good’ factor? [3 Sep 2009]
Consumer Spending and Saving in the UK Economy [18 Aug 2009]
Emerging Leaner, Stronger, Fitter from the Recession [24 Jul 2009]
Causes of a double-dip recession [19 Jul 2009]
Did you feel the shift? [14 Jul 2009]
Bank runs and infectious diseases [7 Jun 2009]
Revision - Animal Spirits [25 May 2009]
Business decisions drive the cycle - one year on [24 May 2009]
Revision: The Liquidity Trap [10 May 2009]
Revision: Importance of Business Expectations [6 May 2009]
Revision: Demand-side shocks [4 May 2009]
(Very) Tentative Green Shoots [13 Apr 2009]
Q&A: What is the difference between a depression and a recession? [2 Apr 2009]
Thrifty days are here again [31 Mar 2009]
Q&A: What is a Keynesian stimulus and will it work? [25 Mar 2009]
The Governor makes a stand [24 Mar 2009]
Robert Schiller on Animal Spirits [10 Mar 2009]

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