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Tag Archives: Bank of England

Will the Chancellor back a Competition Commission inquiry into LIBOR setting?


Before I left Westminster on Thursday, I submitted this written question to the Chancellor for answer on 2 July: Steve Baker (Wycombe): To ask Mr Chancellor of the Exchequer, if he will make an assessment of the need for a Competition Commission inquiry into the routine procedures for setting LIBOR. via the Order Book Combined [2 July 2012 (the ‘Questions Book’)]. With Sir Mervyn King calling for the key market price of LIBOR to be set by a market, there is […]

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Two videos celebrating 15 years of the Monetary Policy Committee


SaveOurSavers are celebrating 15 years of the Monetary Policy Committee with the following video. It’s rather too harsh on the Governor: effective central planning of the price of money is just as impossible as the planning of other prices and surely more counterproductive. That is, the Monetary Policy Committee are trying to do something which cannot be done. The video below from Dominic Frisby goes to the heart of the matter: our system of inflationary money which is loaned into […]

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Expect the Bank of England to be surprised by inflation in the next couple of months


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The Bank of England’s latest Inflation Report forecasts falling inflation: However, my preferred measure of the money supply, MA from Kaleidic Economics, is now rising at 6% year on year, in contrast to the Bank’s measures of broad money: There are other factors at work too but there’s a certain inevitability about headlines like “Bank surprised by shock inflation data” before the summer is out.

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Bank of England’s Haldane endorses concerns on bogus bank accounting


The Bank of England’s Executive Director Financial Stability, Andy Haldane, has set out the case for banks to be held to different accounting standards because the existing rules have may allowed banks to overstate their profits and exacerbate their losses. This is something I covered in a private members’ bill last year, with particular reference to derivatives. As reported in the Guardian: Accounting rules for banks have bent with the financial stability wind in ways which have amplified investor and […]

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If this is capitalism, I am not a capitalist


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I spoke last night in the general debate on the economy, saying*: As I rise to speak I am reminded of a quotation from an economist who was a fierce critic of Keynes, a chap called Henry Hazlitt, who said: “Today is already the tomorrow which the bad economist yesterday urged us to ignore.” We have heard today some moving accounts of individual and collective suffering in different regions of the country and among different sections of the public. We should […]

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More QE? Hold tight for a worse crisis later


From Mises’  Human Action: The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market rate of interest by means of credit expansion. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary […]

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Bank warns lenders over bad loans – FT.com


As I have been saying about IFRS: The FPC said it was most concerned that banks had not set aside adequate provisions for this potential new crop of troubled loans. “If provisioning is inadequate, banks’ reported profits and levels of capital may provide a misleading picture of their financial health,” said Sir Mervyn King, Bank governor and chairman of the FPC. via Bank warns lenders over bad loans – FT.com. In the lastest Financial Stability Report, the Bank of England […]

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The Cobden Centre: What is money?


Writing for The Cobden Centre, I ask “What is money?“: In their working paper “Assessing UK money supply measures in the light of the credit crunch”, Toby Baxendale and Anthony J. Evans provide a better measure of the money supply. In this article, Steven Baker explores the background to the paper and indicates some key findings. Many people know the Bank of England is creating new money through quantitative easing but if the quantity of money is being increased, how […]

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