Bank warned low rate plan risks disaster

The Sunday Times features comments from the IEA

An influential group of economists today launches a savage attack on Mark Carney’s forward guidance policy, warning that it is based on a “flawed model” and risks “accelerating inflation or worsening boom-bust cycles”.

The criticism by members of the shadow monetary policy committee (MPC), which meets under the auspices of the Institute of Economic Affairs think-tank, is the biggest challenge to have been faced by the Bank of England governor since he set out the strategy last month.

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