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Former MPC member David Blanchflower calls on Mervyn King to quit


Former Monetary Policy Committee member David Blanchflower says Bank of England governor Mervyn King should resign from his position because he has compromised the independence of the central bank.

According to a report in the Guardian, Wikileaks memos reveal King (pictured) expressed doubts over David Cameron and George Osborne’s ability to run the economy. The report suggests King held private meetings with the pair to pressure them into drawing up a plan to cut the deficit.

Blanchflower, writing in today’s Guardian, called for King to leave the BoE.

He says: “Mervyn King is one smart guy and that has always been abundantly clear. Unfortunately, it is his thirst for power and influence that has clouded his judgement one too many times.

“He has now committed the unforgivable sin of compromising the independence of the Bank of England by involving himself in the economic policy of the coalition. He is expected to be politically neutral but has shown himself to be politically biased and as a result is now in an untenable position. King must go.”

He adds: “There were insights, though, in the embassy documents that I found truly shocking, not least the details of King’s attempts to co-author the coalition’s strategy on the deficit. That is definitely not part of his job description.”


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There is one comment at the moment, we would love to hear your opinion too.

  1. Independent?

    The Bank of England?

    Let’s stop the pretence now, let’s be honest about the BofE and the FSA, they are Treasury puppets and I must admit I think that is the way they should stay, pretending they are independent is fooling nobody and passing the buck wehn the muck hits the fan is downright dishonest. If the government can’t regulate markets without making out ‘a big boy done it and ran away’ then there is something wrong with the government, it needs to get a grip on reality and find people who have some idea of what is required.

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