They've failed to meet their inflation target for years. Yet instead of recognising quite how awful
the Bank of England has been, what do we do? Give them more power.
The idea that we should abolish "inflation targeting", and set the central bank free from any obligation to properly control the money supply is dangerous.
Even with that narrow remit, our central bank stoked up a massive credit fuelled boom in the years before 2007 – 08. Then came the crunch – and still the credit-crazed quangocrats kept pumping funny money around.
As they've conjured billion of pounds out of thin air, the value of the pound has fallen sharply against almost every other currency on the planet.
If that wasn't bad enough, without an inflation target remit, central bankers would become even more activist, using monetary policy as a tool to try to engineer prosperity.
Look at their record. What could possible go wrong?
It is not the central banks inflation target that we need to abolish, but the notion that a state agency should be rationing credit in the first place.blog comments powered by Disqus
"A revolutionary text ... right up there with the Communist manifesto" - Dominic Lawson, Sunday Times