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Si1

The governor of the bank of England has no accountability to the people, power without representation

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1 minute ago, Ah-so said:

Nothing like an OP with a well-reasoned argument or hypothesis to kick things off. 

I know, have you seen one? ;)

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6 minutes ago, Ah-so said:

Nothing like an OP with a well-reasoned argument or hypothesis to kick things off. 

To be fair, I was expecting this quote to have come from some high brow intellectual type.

But I was wrong.

 

:P:P

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7 minutes ago, TheCountOfNowhere said:

To be fair, I was expecting this quote to have come from some high brow intellectual type.

But I was wrong.

 

:P:P

Now that's got me riled :)

Unlike Mervyn, who was wrong headed but did seem to respect his position, Carney, whether owing to his non British status or rock star reputation, or just plain insider connections, appears not to give a flying sh#t about the common man. And owing to brexit politics, Theresa May doesn't appear able to sack him.

 

Edited by Si1

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You almost wonder why Tim Berners-Lee bothered.....

http://www.bankofengland.co.uk/about/Pages/governance/default.aspx

How the Bank of England is governed

The Bank of England is owned by the UK government. Parliament has given us powers through legislation, which means that we are accountable to both Parliament and the public.

The Bank is overseen by a board of directors, known as the Court of Directors, who are appointed by the Queen on the recommendation of the Prime Minister and the Chancellor. Court is responsible for setting and monitoring the Bank's strategy and taking key decisions on spending and appointments. The government chooses one of the non-executive, or external, members to chair Court.
 
We demonstrate our accountability to Parliament through the House of Commons Treasury Committee. Our Governors, Executive Directors and external Monetary Policy Committee and Financial Policy Committee members regularly appear before the committee after the Inflation ReportFinancial Stability Report and Prudential Regulation Authority Annual Report are published.
 
New members of the Monetary Policy Committee and Financial Policy Committee also have hearings at the Treasury Committee before they are appointed. Other committees occasionally hold evidence sessions with representatives of the Bank. You can view transcripts, reports and video footage of all appearances. Contact: parliamentaryaffairs@bankofengland.co.uk.
 
The PRA has a Board that is responsible for taking the most important decisions about the rules that apply to firms and the supervision of individual firms. The Board prepares a strategy each year, in consultation with the Bank’s Court of Directors. This sets out how the PRA will meet its objectives, which are determined by Parliament.
 

Bank of England legislation
 

The Bank was originally established by Royal Charter under the Bank of England Act 1694. Since then a number of laws have been made that affect the Bank: 

The Memorandum of understanding on financial crisis management between HM Treasury and the Bank is also relevant.

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"We demonstrate our accountability to Parliament through the House of Commons Treasury Committee."

 

who can't actually discipline the governer, so he's practically uncountable in the current political turmoil then

 

did you see Carney's clashes with Rees-Mogg a few months ago?

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7 minutes ago, Si1 said:

"We demonstrate our accountability to Parliament through the House of Commons Treasury Committee."

 

who can't actually discipline the governer, so he's practically uncountable in the current political turmoil then

 

did you see Carney's clashes with Rees-Mogg a few months ago?

Isn't Carney due for another beasting tomorrow?

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6 minutes ago, zugzwang said:

Isn't Carney due for another beasting tomorrow?

Indeed, the Treasury Committee is the most effective of them all. And look where that gets us.

The thread seems to suggest it would be better to have elected Governors, I can't imagine anything worse. But it's interesting that neither political control of the currency and economy, nor the allegedly technocratic model, are free from ideological and corporate influence.

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1 minute ago, darkmarket said:

 

The thread seems to suggest it would be better to have elected Governors

Eh?

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1 minute ago, Si1 said:

Eh?

Well, what kind of accountability were you referring to? 'Power without representation' suggests a wish for some kind of political representation, i.e. voting.

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8 minutes ago, darkmarket said:

Well, what kind of accountability were you referring to? 'Power without representation' suggests a wish for some kind of political representation, i.e. voting.

I asked the question. I'm not saying I have the answer! 

Right now, in practice, Carney is bullet proof in his position.

 

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1 hour ago, Si1 said:

"We demonstrate our accountability to Parliament through the House of Commons Treasury Committee."

 

who can't actually discipline the governer, so he's practically uncountable in the current political turmoil then

 

did you see Carney's clashes with Rees-Mogg a few months ago?

+1

 

That'll be the Treasury Committee when he, on behalf of the BoE, was shown by Rees- Mogg to be telling at least one bare faced lie - about the cause of crazy house prices?  It all came to nothing of course - so far.

 

Quote

The Bank of England is owned by the UK government. Parliament has given us powers through legislation, which means that we are accountable to both Parliament and the public

It's very difficult to see how the BoE is accountable to the public except maybe through some mythical mechanism via Parliament and general elections.  It seems a pretty tenuous claim.  When was BoE policy part of any election manifesto - those manifestos that get reneged on as soon as any party gets in power.  

Edited by billybong

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11 minutes ago, Si1 said:

Right now, in practice, Carney is bullet proof in his position.

Even if public dissatisfaction increases to the point where Carney is replaced, we only have Haldane positioning himself as successor, and he's just as dovish if not more so. The question of personalities is insignificant, the problem lies in ideology and misalignment of interests.

Carney can technically be held to account for failing to meet his statutory remit, that power lies with the Treasury. But the Treasury will clearly agree with his position on "looking through" inflation to avoid unemployment, for example, won't take responsibility for the government's failure to provide an environment where 2% indigenous growth is possible, and won't oppose QE as long as the facade of growth remains intact.

I don't think it's possible to align the interests of the BoE or Treasury with those of the people who've suffered under the inept mismanagement of the economy this last generation. I do think there's a strong case for limiting the powers of the Bank to a degree proportionate to their ability to accurately predict the consequences of their actions on all sectors of society.

An integral rule of the Westminster system is that no parliament can bind its successors. But the economic decisions taken over the past generation will bind future governments for many to come. It's unconstitutional, speculative and demonstrably ineffective.

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44 minutes ago, Si1 said:

I asked the question. I'm not saying I have the answer! 

Right now, in practice, Carney is bullet proof in his position.

 

When Carney arrived he was feted (by Left and Right) as some kind of financial Harry Potter but he's fumbled the ball so often that it's hard to find anyone with a good word to say about him these days. The Left despise him because of his role in enabling Osborne's welfare cuts, the Right despise him because of his opposition to Brexit. If he's bulletproof it's only because of the fragility of sterling and the potential shock to the economy that replacing him might cause. The last thing May and Hammond need right now is a currency crisis. Which isn't to say we won't get one anyway.

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2 hours ago, Si1 said:

"We demonstrate our accountability to Parliament through the House of Commons Treasury Committee."

 

who can't actually discipline the governer, so he's practically uncountable in the current political turmoil then

 

did you see Carney's clashes with Rees-Mogg a few months ago?

Are you arguing that £100 x millionaire Rees-Mogg should decide interest rates? 

He can of course legislate along with parliament to their hearts content. Why doesn't he? 

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17 minutes ago, Little Frank said:

Are you arguing that £100 x millionaire Rees-Mogg should decide interest rates? 

He can of course legislate along with parliament to their hearts content. Why doesn't he? 

1. No

2. I gather they're rather busy right now

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