Thursday, August 12, 2010
Not sure he is even able to predict even this…
Bank of England boss Mervyn King says it's no more Mr 'NICE' Guy
Recent criticism of the Bank of England's forecasting failures has clearly stung the policymakers on Threadneedle Street. The Bank's credibility is not supposed to be called into question, which is perhaps why Mervyn King, the Governor, felt it was necessary to bat away the attacks as firmly as he did at Wednesday's Inflation Report .
Posted by mark @ 11:07 AM (1214 views)
8 thoughts on “Not sure he is even able to predict even this…”
Add a comment
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
easybetman says:
http://www.theaustralian.com.au/business/opinion/reliving-the-70s-in-fighting-inflation/story-e6frg9pf-1111116286867
Another related article – basically says Central Bank will tolerate cost pushed (petrol etc) inflation but will not tolerate
wage push inflation (not sure if Banker’s pay are excluded from calculation, however).
mr g says:
@Easybetman “Central Bank will tolerate cost pushed (petrol etc) inflation but will not tolerate wage push inflation”
How do you stop wage push inflation if cost pushed inflation, ie the cost of living, is let’s say 20%?
I know that private sector employers are saying no pay increases but how long can they resist pay demands if inflation is at the figure I have used above?
easybetman says:
Hi Mr G,
Good question… one for the central banker I suppose. Of course I don’t agree with their approach as I think their job is to preserve the real purchasing power of the money that they print.
mr g says:
@Easybetman “I think their job is to preserve the real purchasing power of the money that they print.”
Absolutely spot on.
tenyearstogetmymoneyback says:
Mr G wrote “How do you stop wage push inflation if cost pushed inflation, ie the cost of living, is let’s say 20%?”
Simple. Make everyone fear for their jobs.
Back in the 1970s and the days of Fords infamous 15% against Government guidelines, business was doing alright and those that weren’t like Rolls Royce got bailed out by the Government.
Crunchy says:
3. easybetman
LOL.
I see a conflict of interest. Read your comment again and see if you can spot the oxymoron.
What a farce. What a silly game. What a profitable one, for some.
We need a new monetary system not a new political party.
cat and canary says:
In other words, he believes short-term inflation may tend to remain above target even if the underlying figures stripped of distorting elements like changes to VAT and oil price spikes suggest it is on track in “the medium term”.
….yes, and he has continued to state that “inflation will remain above target in the short term” for months and months now, and for months to come!!
Bigelkhorn says:
Inflation yes? But I would be more worried about things to come after that. Check this guy out, he called the crash back in 2008 and has been spot on with this for the last few years.
http://www.youtube.com/watch?v=gn6kS4l2yFM