Blanchflower has been the most consistent supporter of lower interest rates to help the ailing economy. He recently told the Guardian: “”This is not something I wanted to get right, but I warned that this was going to happen unless we acted – I wanted to prevent the crisis.
“I’m not saying everything would have been wonderful, but at least if we’d acted earlier we would be ahead of events and not reacting to them.”
Blanchflower wrote to the Chancellor with his resignation. Alistair Darling replied: “I would like to take this opportunity to thank you for your major contribution to the work of the committee since 2006. In these difficult times, it is important that we have people that energetically put forward expert and challenging analysis and views to help shape the debate.
“I hope that you will continue to make a significant contribution to the global economic debate in the years ahead.”
The deputy Governor for financial stability, Sir John Gieve is also stepping down from his position to be replaced by MPC member and Bank of England executive director of markets Paul Tucker.
Governor of the Bank of England, Mervyn King, says: “I’m delighted Paul has been appointed. His experience across the Bank makes him the ideal person to help steer the financial system through this challenging period.
“I would like to thank Sir John for his significant contribution to the Bank and in particular for his work in shaping the Banking Reform Bill and for the international discussion of regulation in the Financial Stability Forum and elsewhere.”