Tuesday, February 16, 2010

Letters between the Governor and the Chancellor

Letter from the Governor to the Chancellor

Correspondence regarding inflation.

Posted by 51ck-6-51x @ 11:02 AM (1546 views)
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10 thoughts on “Letters between the Governor and the Chancellor

  • what self congratulating back slapping ra-ra BS. Pointless individuals.

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  • This bit’s good.

    “And intelligence from the Bank’s Agents suggests that pay growth in the non-financial
    sector is likely to remain subdued in the period ahead.”

    We’re left to make the assumption that the financial sector will continue to skim off just as much as they want.

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  • vacuouspolitician says:

    Give the man a napkin…

    but folks …”I fail to see what Merv has done that is so wrong” …followed by “no one should blame Merv”

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  • “And intelligence from the Bank’s Agents suggests that pay growth in the non-fictional
    sector is likely to remain subdued in the period ahead.”

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  • The depreciation of sterling in 2007-8 is cited as one of the wild cards which “cannot immediately be offset by monetary policy” and which is causing a rise in inflation. Why is this a wild card? Wasn’t it a deliberate policy? And can’t it be offset by monetary policy (sterling interest rates up, sterling up)?

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  • icarus @5

    I agree – it is almost as if they are taunting us. Seeing just how stupida comment they can make and get away with

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  • No one should blame Merv?

    Merv works for a central bank. Guilty by appointment.

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  • Only 1 post per hour on this sickness?

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  • Inflation Is Inevitable says:

    QE, then Inflation, what a puzzle, what did that Northern Rock banker say in his defence.

    No one could possibly have predicted it.

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  • icarus: Interest rates are one factor that affect foreign exchange rates, but there are many others. The country’s ‘current account deficit’ or surplus will affect the foreign exchange rate, so will general confidence in the economy of the country. At the moment, raising interest rates in the UK would probably have a serious impact on the economy, so sterling might fall!
    When the credit crisis hit, investors re-assessed the UK as an investment location, and because of the UK’s central role in the crisis, decided to pull out. The fact that interest rates were also lowered during the crisis also helped the fall, in this case.

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