Monetary policy should be designed to ensure we have stable prices

The Telegraph features IEA comments

The Institute of Economic Affairs was more direct, describing Mr Carney's forward guidance as "the most dangerous development in UK monetary policy since the late 1980s".

"Monetary policy should be designed to ensure that we have stable prices." 

"The level of unemployment is mainly determined by a range of factors such a labour market regulation, the benefits system, tax rates and so on. To try to use monetary policy to reduce unemployment when inflation is already above target is playing with fire and could lead us down the road that we followed in the 1970s."

Read the full article here.

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