More monetary tightening will set our own house on fire
17 August 2023
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In the Media
Julian Jessop featured in the Telegraph
17 August 2023
Economics
Housing and Planning
Phillip Booth writes for The Telegraph
IEA Senior Academic Fellow Phillip Booth has written for The Telegraph on how the Bank of England’s excessive monetary tightening will only hurt the UK economy.
Phillip wrote:
“The Shadow Monetary Policy Committee (of which I am a member), hosted by the Institute of Economic Affairs, may not have the type of forecasting expertise that the Bank has, which allows it to estimate whether inflation will be 2.6pc or 2.7pc next month.
“But its members do understand the underlying processes that give rise to inflation. We were therefore able to write to the Financial Times in April 2021 with the following warning: We believe that above-target inflation is to be expected in 2022 and perhaps 2023.
“In our view, the Bank of England will be to blame for this setback, as it took the measures that have pushed money growth to its current excessive level.”
You can read the full article here.
Phillip wrote:
“The Shadow Monetary Policy Committee (of which I am a member), hosted by the Institute of Economic Affairs, may not have the type of forecasting expertise that the Bank has, which allows it to estimate whether inflation will be 2.6pc or 2.7pc next month.
“But its members do understand the underlying processes that give rise to inflation. We were therefore able to write to the Financial Times in April 2021 with the following warning: We believe that above-target inflation is to be expected in 2022 and perhaps 2023.
“In our view, the Bank of England will be to blame for this setback, as it took the measures that have pushed money growth to its current excessive level.”
You can read the full article here.
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