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Uk Treasury To Appoint Economist To Replace Nickell On Mpc

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UK Treasury To Appoint Economist To Replace Nickell On MPC

LONDON (Dow Jones)-The U.K. Treasury said Saturday it was seeking a top economist to replace Stephen Nickell on the Bank of England's Monetary Policy Committee when his term runs out at the end of May.

The treasury confirmed in a statement that it was "involved in a world-wide search for a top professional and independent economist" to replace Nickell.

The treasury's statement serves notice that Nickell's replacement on the MPC could well be a non-U.K. national. It also shows clearly that the treasury is committed to ensuring that at least one representative from academia is a committee member.

The treasury said that Chancellor of the Exchequer Gordon Brown had himself made clear that he wanted an independent professional economist to replace Nickell, whose background is also in academics.

The treasury statement was issued in part to counter a letter in Saturday's Financial Times from four former MPC members, Sushil Wadwhani, Willem Butier, DeAnne Julius and Charles Goodhart. In the letter, the three expressed concern that Brown might be receiving advice not to appoint an economist to replace Nickell.

Nickell is one of the four members of the nine-member MPC that come from outside of the Bank of England. The external members are appointed directly by Chancellor Brown. The rest of the committee, including BOE Governor Mervyn King, are from within the central bank.

Nickell steps down from the MPC at the end of his second three-year term on the committee at the end of May. A widely respected academic economist who currently works at the London School of Economics, Nickell is to become the Warden of Nuffield College, Oxford.

Markets will keenly watch the identity of Nickell's replacement for any sign of their likely voting pattern on the interest-rate setting MPC.

Nickell has recently garnered a reputation for being the MPC's leading dove. He has voted alone for an interest rate cut at each of the three previous monthly MC meetings, arguing that without a cut economic growth in the U.K. will be too weak to keep inflation at the BOE's medium-term target of 2.0%.

So far there has been little sign that other MPC members are willing to join Nickell in voting for a cut.

Nickell has also been seen as the main intellectual counterweight to King, also an academic by background, on the MPC. Another external MPC member, former FT editor Richard Lambert, also reaches the end of his three-year term at the end of May, although he could be re-appointed.

The news that the treasury is looking for a professional economist to replace Nickell may also go some way to assuage fears that too many people with close links to the treasury have been appointed to the MPC recently. For example, the newest MPC member, BOE Deputy Governor John Gieve was formerly a top civil servant who spent much of his career at the treasury.

There is a precedent for non-U.K. nationals to be appointed to the MPC, such as both Buiter - a Dutchman - and Julius - an American.

http://www.nasdaq.com/aspxcontent/NewsStor...nternational.na

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The MPC should be a reality TV show like Big Brother, and we should be able to vote one of the members out at the end of each week.

It would be interesting to know what Merv would say, sitting in the Diary Room Chair.

:lol:

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The MPC should be a reality TV show like Big Brother, and we should be able to vote one of the members out at the end of each week.

It would be interesting to know what Merv would say, sitting in the Diary Room Chair.

:lol:

Or watching from the sidelines as Nickell flounces naked in the "liquidity pool" with his **** tucked between his legs. :huh::ph34r::o:blink:

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Good riddance to him. Quite how he is described as a leading economist is beyond me after his recent statements about there not being a housing bubble at all. Any fool can see thats rubbish.

And voting for a cut, what an idiot!

Edited by Spoony

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There is a precedent for non-U.K. nationals to be appointed to the MPC

Oh. There's a surprise. Just like our footballers, then, 100% Home-Grown English.

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Or watching from the sidelines as Nickell flounces naked in the "liquidity pool" with his **** tucked between his legs. :huh::ph34r::o:blink:

:blink:

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The MPC should be a reality TV show like Big Brother, and we should be able to vote one of the members out at the end of each week.

It would be interesting to know what Merv would say, sitting in the Diary Room Chair.

:lol:

- and vote new members in. I think that with her considerable intellect, great wisdom and unparallelled experience in the world finance, the MPC could do a lot worse than Chantelle...

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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