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.”