Monetary policy no substitute for economic reforms

The Telegraph reports on the IEA's State of the Economy Conference

At the IEA's State of the Economy conference, deputy governor of the Bank of England Charlie Bean addressed concerns over the Bank's two per cent inflation rate policy.

The mandate has been under scrutiny since Mark Carney, the incoming Governor, suggested central banks could move to a nominal GDP target in extreme circumstances and recommended more flexibility be introduced into the inflation target.

Speaking at the Institute for Economic Affairs, Mr Bean said the Bank was “ready to take further action should it be warranted” but that monetary policy was no substitute for economic reforms.

Read the full article here.

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