The Adam Smith Institue’s Head of Policy, Ben Southwood, was quoted in City AM this morning on the Bank of England’s inflation policy.
Read the article here.
“Ben Southwood, head of policy at the Adam Smith Institute, argues the opposite. “Under half of the population can tell you who sets the base interest rate”, says Southwood, implying that policy simply isn’t well understood. As for working well throughout the business cycle, he says that a regime of inflation targeting has seen spending growth “anemic” since the financial crisis. NGDP growth still remains below its long-term trend.”