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Merv Kings Old Student

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Don't know if anyone has posted this already, but there was an interesting letter in this weekends Business

from a previous student of Mervyn King.

What Inflation?

Sir, with reference to your article on the difference between the "cost of living" and UK consumer price index (CPI), I remember my times studying monetary economics at The London School of Economics in the mid 1980's.

One of my teachers used to say that if he was ever in control of monetary policy, the best policy would be to keep interest rates as low as possible, whilst always denying the existence of any inflation.

I wonder if his instincts have changed now that he is in control of monetary policy?

Name and e-mail address supplied in newspaper

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You find out what the real effect of hidden real inflation has been when your economy goes into depression because nobody has got any money left to keep it ticking over after paying for the basics, companies no longer invest because they see no profitable point in doing so.

Edited by OnlyMe

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Hidden inflation mixed with irresponsible lending = Guess What

But according to the FSA "There's no such thing as over-lending - banks lend money, that's what they are there to do." - a quote I recently picked up from one of their buffoons.

Edited by gruffydd

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  • 302 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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