R K Posted December 13, 2012 Share Posted December 13, 2012 (edited) http://www.telegraph...ion-target.html The Chancellor said he was "glad" that Mark Carney, the next Governor of the Bank, had raised the prospect of ending central banks' inflation targets to concentrate more on gross domestic product. The Daily Telegraph revealed yesterday that senior ministers are pressing Mr Osborne to make changes to the Bank's instructions amid gloomy prospects for economic growth. Questioned by MPs on the Treasury Select Committee, Mr Osborne repeatedly declined to rule out changes in the Bank's target, saying only that the arguments for change would have to be "pretty strong". The Bank is currently under orders to keep inflation around 2 per cent, with no formal instruction to boost economic growth Mr Carney, the current head of the Bank of Canada, this week suggested that central banks should consider moving away from inflation targeting and aiming at nominal GDP, the value of the economy adjusted for inflation. Mr Osborne described the suggestion as "innovative" and said he was pleased Mr Carney was discussing such ideas. "There is a debate about the future of monetary policy -- not exclusively in the UK, but in many countries. There is a lot of innovative stuff happening around the world," he said. "There is a debate going on. I am glad that the future central bank governor of the UK is part of that debate." Asked if he was considering making the change suggested by Mr Carney, Mr Osborne said: "There is a debate going on. Any decisions, any future decisions are a matter for government." He added: "I have no plans to change the framework. There is a debate going on. I think it's right there is a debate." He's been speaking to Grant again hasn't he. Edited December 13, 2012 by R K Quote Link to comment Share on other sites More sharing options...
Dorkins Posted December 13, 2012 Share Posted December 13, 2012 Pretty easy to increase nominal GDP when you're printing money to buy government bonds. 1. Print money 2. Buy government bonds 3. Government spends more money 4. Government spending component of nominal GDP increases Meanwhile the working proles struggle even more to keep themselves housed, warmed and fed. Quote Link to comment Share on other sites More sharing options...
Errol Posted December 13, 2012 Share Posted December 13, 2012 Any mention of the word 'innovative' in connection with money or finance is a huge red flag. Quote Link to comment Share on other sites More sharing options...
Gone baby gone Posted December 13, 2012 Share Posted December 13, 2012 Any mention of the word 'innovative' in connection with money or finance is a huge red flag. Indeed - it usually means the average person is going to get a good shafting at the hands of the 1%. Quote Link to comment Share on other sites More sharing options...
R K Posted December 13, 2012 Author Share Posted December 13, 2012 Any mention of the word 'innovative' in connection with money or finance is a huge red flag. We are in complete agreement Errol. (not that it's remotely innovative anyhoo) Quote Link to comment Share on other sites More sharing options...
frederico Posted December 13, 2012 Share Posted December 13, 2012 It's a fairly good indication that they have no idea how the real world works Quote Link to comment Share on other sites More sharing options...
punter Posted December 13, 2012 Share Posted December 13, 2012 Indeed - it usually means the average person is going to get a good shafting at the hands of the government connected cronies and banksters fixed it for you Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 13, 2012 Share Posted December 13, 2012 (edited) 1+1 = 3 Innovative. Edited December 13, 2012 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted December 13, 2012 Share Posted December 13, 2012 Looks like I'd better buy some lube at the weekend as it appears we are all going to be taking a damn good shafting in order to create a recovery. Conformation it's only going to get worse for the proles. Quote Link to comment Share on other sites More sharing options...
durhamborn Posted December 13, 2012 Share Posted December 13, 2012 They must know inflation is about to go up much more and dont want to explain why interest rates arent following,this would get them off the hook. They havent stolen all savings,labour and assets yet from everyone.Cant stop until the job is done. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted December 13, 2012 Share Posted December 13, 2012 They must know inflation is about to go up much more and dont want to explain why interest rates arent following,this would get them off the hook. They havent stolen all savings,labour and assets yet from everyone.Cant stop until the job is done. Perhaps they are hoping inflation is going to go up to get them off the hook and wipe out the debts. Trouble is wage inflation is non-existent and they have the problem that discretionary spending is collapsing. There plan could have some fatal flaws... Quote Link to comment Share on other sites More sharing options...
200p Posted December 14, 2012 Share Posted December 14, 2012 How about repurchasing that400t of gold that Brown sold off in 2000? OUR gold. That would be radical. Other countries are adding to their central bank holdings. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.