An Evening Panel Discussion - A new Governor and new Deputies - do we now need a new approach to monetary policy?
Since becoming governor of the Bank of England, Mark Carney has attempted to make his mark without changing the legal remit of the Bank of England by giving forward guidance on the MPC’s policy stance. However, this turn of events, together with the unusual approach to monetary policy more generally since the financial crisis, gives rise to further questions about the Bank of England’s remit. Should the Bank of England target the price level instead of inflation? Should it target nominal GDP? Should the inflation target be changed? Should the Bank return to monitoring monetary aggregates? Should it target the exchange rate? Or, should the Bank simply redouble its efforts to ensure that it fulfils its existing mandate? Alternatively, perhaps more radical reform should be considered involving the privatisation of the Bank of England or the abolition of central banks altogether.
Prof Tim Congdon CBE, Chief Executive, International Monetary Research Lt