Comments on: Now the Bank of England joins the Fed’s party http://www.johnredwoodsdiary.com/2007/09/19/now-the-bank-of-england-joins-the-feds-party/ Conservative Party Member of Parliament for Wokingham Mon, 06 Oct 2008 14:55:31 +0000 http://wordpress.org/?v=2.6.2 By: Jesus http://www.johnredwoodsdiary.com/2007/09/19/now-the-bank-of-england-joins-the-feds-party/#comment-19142 Jesus Tue, 15 Apr 2008 13:28:07 +0000 http://www.johnredwoodsdiary.com/2007/09/19/now-the-bank-of-england-joins-the-feds-party/#comment-19142 Hey your wrong Hey your wrong

]]> By: Tony Makara http://www.johnredwoodsdiary.com/2007/09/19/now-the-bank-of-england-joins-the-feds-party/#comment-6321 Tony Makara Wed, 19 Sep 2007 23:58:35 +0000 http://www.johnredwoodsdiary.com/2007/09/19/now-the-bank-of-england-joins-the-feds-party/#comment-6321 The so-called independence of the Bank of England, is, as you rightly say a misleading concept. I quote from Brown's letter to he BOE of 5/6/97 in which he sets out the conditions for independence. "The Government will have the power to give instructions to the Bank on interest rates." That sentence is unambiguous. Gordon Brown and the Labour government are still running the show, though we can be certain they will use the BOE as fall guys if necessary. It is not in Gordon Brown's nature or in the Labour party's culture to adopt a laissez-faire approach to central banking. The so-called independence of the Bank of England, is, as you rightly say a misleading concept. I quote from Brown’s letter to he BOE of 5/6/97 in which he sets out the conditions for independence.

“The Government will have the power to give instructions to the Bank on interest rates.”

That sentence is unambiguous. Gordon Brown and the Labour government are still running the show, though we can be certain they will use the BOE as fall guys if necessary. It is not in Gordon Brown’s nature or in the Labour party’s culture to adopt a laissez-faire approach to central banking.

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