On 22 March, I took the opportunity to speak in the debate on the Budget Resolutions. The Hansard record is below (emphasis mine): Mr Steve Baker (Wycombe) (Con): I rise to support the Budget and, in particular, to welcome the Government’s supply-side reforms. This has been a dramatic Budget, and I would […]
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Keynes, Carney and the corruption of capitalism
We’ve come a long way since the Bank of England’s Andy Haldane pointed out that they had “intentionally blown the biggest government bond bubble in history” and that it constituted the biggest risk to financial stability. Yesterday, in his Sky News interview, the Bank’s Governor Mark Carney said that the housing […]
Read MoreMonetary activism must end in a slump
On Friday, I spoke against monetary activism once again, complaining about the use of expectation management and new monetary instruments in an attempt to defibrillate the economy. It’s a mistake, not least because a failure to contain inflationary expectations could be catastrophic, as I set out last year. Mark Carney […]
Read MoreThe limits to monetary activism are being acknowledged
Via Bank of England’s money printing is putting UK economy at risk – Telegraph: In its annual report, the Swiss-based Bank for International Settlements (BIS) warned that artificially low rates and inflated asset prices could also be holding back growth by masking lenders’ bad debts and deterring them from cleaning […]
Read MoreMonetary activism caused the crisis and may cause a worse one later
Last night in the Budget debate, I set out how “monetary activism”, which is one of the pillars of the Government’s strategy, could go wrong: This is a Budget of fiscal conservatism and monetary activism. It is a Budget, above all, of economic expectations, setting out to people that we […]
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