Today, we learn,
Europe’s leaders are poised this morning to cut the European Union’s budget for the first time in its 56 year history following a major victory for David Cameron.
Great news and congratulations to the Prime Minister and the negotiating team. Let’s hope MEPs don’t block it.
In his first public appearance in the UK, Mark Carney, the current Governor of the Bank of Canada, said Britain might benefit from a commitment to keep interest rates low for a fixed period as well as a more “flexible” inflation targeting regime that tolerated inflation remaining higher for longer.
Given he can extend arguments about the “intertemporal misallocation of capital”, it’s a pity Mr Carney does not draw the right conclusions about his policy ideas. As Steve Horwitz explains, “central banks cannot solve the problems they created, any more than an arsonist makes a good firefighter.”
We can expect Mr Carney to test his theories to destruction. Let’s hope society recovers swiftly afterwards.