Nigel Farage, generally considered to be to the Right of the Conservative Party, is advocating expansionist Bank of England policies, and "maximum employment".
Alex Hern of the New Statesman has spotted something interesting in a piece by Nigel Farage for London’s City A.M this week.
Farage, generally considered to be to the Right of the Conservative Party, is advocating expansionist Bank of England policies.
The mandate of the Bank has been focused on avoiding a repeat of the last crisis, instead of addressing the root of the problem we face today. Its negative focus on fighting inflation is put to shame by the positive objectives of the US Federal Reserve’s dual mandate that it “shall maintain long-run growth of the monetary and credit aggregates, commensurate with the economy’s long-run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates.” That is the language of Ukip economics – maximum employment, growth, and a positive outlook.
Maximum employment?! Quite.
As Hern puts it, “the move is quite some way from the usual populism of the Ukip manifesto”.
Today’s City A.M postbag contains several letters from less than impressed readers in response to Farage’s article:
Farage is clearly just another spendaholic politician who doesn’t give two hoots about future generations, who’ll have to pay for his monetary and fiscal experiments.
I’m a great fan of Nigel Farage, but he needs a better economic adviser.
Mark Carney, who will replace Sir Mervyn King as governor of the Bank of England next year, said in December that if a central bank were to set its monetary policy based on both inflation and growth, rather than solely inflation, it “could in many respects be more powerful” in helping to boost an economy.
But George Osborne said inflation-targeting had served the UK well and “provided stability”.
Leave a Reply