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I got it wrong on inflation, says Besley
29 Oct 2008Now he tells us. Tim Besley, the arch-hawk on the Bank of England's monetary policy committee, admitted to a somewhat hostile City audience that inflation is no longer a major threat to the UK economy.
Besley shocked the City by voting for an increase in interest rates in both July and August, arguing runaway inflation was more of a problem than the prospect of a prolonged economic downturn.
Announcing the U-turn, he told a City conference: "There was a time last summer when I judged the upside inflationary risks to be sufficient to warrant an increase in Bank Rates to head off the prospect of persistent inflation." Some economists say UK interest rates will have to fall to 1% to deal with the downturn.
The City audience expressed bafflement with his earlier position. "The upside risks to inflation have diminished significantly," explained Besley, an LSE economics professor.
Reader views (3)
Sadly the mad monetarists like the creationists are still with us. You would have thought that after the early eighties and the early nineties that these idiots would have learnt from their mistakes. It's just a shame that they managed to get their academic posts when Friedmanism was the new craze. Perhaps monetarist models should be burnt on November the fifth.
- Tommy Cockles, Ealing England, 29/10/2008 17:25
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Christ!!!! Where was this idiot??? Anyone could see inflation was not the problem. He may be a Prof in economics. But we need experts in touch with reality - not with their heads stuck in books. In any other indsutry he would have been sacked. They are all a bunch of dithering muppets!!!
- James, London, 29/10/2008 17:02
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obviously a very bright man. It is good to know that our destiny is in such illustrious hands.
- Dai, london, 29/10/2008 12:38
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