A sad day for the MPC

kennyboy66_2

http://business.timesonline.co.uk/tol/business/columnists/article5321634.ece

Blanchflower steps down in May.

At least he goes knowing that he was right.

sympatex

Was he though?

I think he's getting out now before the finger pointing starts.

In 2005 when they reduced interest rates (which he had championed for) created a whole new boom which we're only now getting level with (back to 2005 prices).

The only support i could provide is the BOE and the bank rates disconnect. They should have made borrowing more expensive in 2005, they didn't, delaying the crash and making it so much worse.

Heyman_2

If you have only one argument, then sooner or later you will be 'right'.

But the guy has been like a broken record over the past few years - maybe he sees going now as some kind of vindication????

JayScottGreenspan

For six years our monetary policy was too slack. This was a big factor in creating the current mess.

Blanchflower always votes for cuts. Even a stopped clock is right twice a day. As it happens, part of the strategy to help mitigate the current mess involves cutting interest rates.

Deadman_2

Some of you people are seriously misguided.

Blanchflower voted for a cut EVERY month.

It shows the general lack of intelligence amongst certain members on this site. I could have done his job quite easily. Would you have beed "sad" for me to go just because I posted for cut month after month?

Misguided and foolhardy.

Deadman_2

JayScottGreenspan wrote: »

For six years our monetary policy was too slack. This was a big factor in creating the current mess.

Blanchflower always votes for cuts. Even a stopped clock is right twice a day. As it happens, part of the strategy to help mitigate the current mess involves cutting interest rates.

Ah, some intelligence for a change.

WTF?_2

kennyboy66 wrote: »

http://business.timesonline.co.uk/tol/business/columnists/article5321634.ece

Blanchflower steps down in May.

At least he goes knowing that he was right.

If they hadn't been so reticent to raise rates in the first place (and he was a leading light in resisting higher rates), we might not be in as much of a mess now.

In particular, the lowering of the rate in August 2005 sticks out as a massive economic mistake that has resulted in tens, maybe hundreds of thousands of 'hard working families' and individual buyers being in the economic poo now.

luvpump

kennyboy66 wrote: »

http://business.timesonline.co.uk/tol/business/columnists/article5321634.ece

Blanchflower steps down in May.

At least he goes knowing that he was right.

Are you kidding ?? Good riddance - it is clowns like Blanchflower, who have championed the grossly negligent low interest rate policy, that have got us into the mess we are in.
Its time for some Volcker-esque appointees on the MPC who wont shy away from giving the UK economy the tough medicine it needs ..

StevieJ

Heyman wrote: »

If you have only one argument, then sooner or later you will be 'right'.

But the guy has been like a broken record over the past few years - maybe he sees going now as some kind of vindication????

You mean like the HPC people

Heyman_2

StevieJ wrote: »

You mean like the HPC people

I am shocked and appalled that you would draw a comparison like that Steve

WTF?_2

StevieJ wrote: »

You mean like the HPC people

No comparison at all.

The 'HPC people' have been pointing out the unsustainability of an irrational bubble. By definition, you can't predict when the bubble will burst because it's irrational.

Blanchflower on the other hand was chanting a constant mantra of 'lower interest rates' even when it was obvious that the economy needed them set higher.

Ironically, if he hadn't done his damndest in his position in the MPC to keep them low in the past (when they needed to be high) there would be much more scope for lowering them when they need to be lowered.