Detail Shake 'em Up, Mr Carney; British Monetary Policy   Oleh:  [s.n] Jenis: Article from Bulletin/Magazine Dalam koleksi: The Economist (http://search.proquest.com/) vol. 406 no. 8821 (Feb. 2013), page 11-12. Topik: Central Banks; Monetary Policy; Politics; Investigations Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: EE29.75 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel On February 7th Mark Carney will appear before the Treasury Select Committee for his first formal grilling from British lawmakers since being named the next governor of the Bank of England. This will be an important moment. Mr Carney, hired away from the Bank of Canada, has recently given hints that he wants to shake up British monetary policy. He has talked about the need to stimulate an inert economy until it reaches "escape velocity"; he has said that a central bank might need to "tie its hands" by announcing thresholds to be reached before it reduces stimulus; and he has suggested that the level of nominal GDP--the cash value of output without adjusting for inflation--might be a better target than inflation alone. This willingness to think afresh is admirable. But Mr Carney must now connect the dots between his ideas. At the moment the Bank of England's mission, set by the chancellor of the exchequer, is to focus on an inflation target of 2%. That makes sense in normal circumstances. But with short-term interest rates at almost zero, the economy growing at barely 2% in nominal terms (and not at all if you factor in inflation) and many years of austerity ahead, it is worth temporarily reinterpreting that policy and focusing on nominal GDP. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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