The story from the inside: David Blanchflower

maveli

A link posted by SuperV on Mortgage forum. Haven't seen on this forum (or did I miss it ?) . Interesting reading

My bet is that he will get his way and the MPC will approve further quantitative easing by November at the very latest. He may even manage to get rates down below 0.5 per cent. He obviously now understands how serious is the economic situation facing the country. He deserves our respect for that. Perhaps his power has lessened just when we need him to assert it. My worry is that most of the other MPC members are not on board. Time for a rethink? It is certainly the moment for Mervyn to show leadership and rap a few knuckles for the good of us all.

http://www.newstatesman.com/economy/2009/09/mpc-bank-recession-king-rates

ruggedtoast

link doesnt work

PasturesNew

ruggedtoast wrote: »

link doesnt work

It does now: http://www.newstatesman.com/economy/2009/09/mpc-bank-recession-king-rates

mbga9pgf

QE wont go any forther than it is. They are teetering on the edge as it is.

ManAtHome

Blanchflower's main point ever since he joined the MPC was that the inflation/wages loop was dead due to the UK "flexible" labour market (combination of tax credits, weakened unions and immigration would keep wages down regardless of inflation).

Nice theory - the rich get richer or at least keep their dosh, while the poor are left behind the asset bubbles (summary - I'm alright Jack, pull the ladder up a bit sharpish Jeeves...).

louissusman

David ("Danny") Blanchflower is professor of economics at Dartmouth College, New Hampshire, and is the co-author, with Andrew Oswald, of the prize-winning "Wage Curve" (MIT Press).

mbga9pgf

He also managed to turn his ex wife lesbian. The guy is a C0ck of the highest order. He also forgets to mention that he voted down IRs in 2005 and re-ignited to housing boom.

tomterm8

I'm confused, I thought Mr Blanchflower had already left the MPC. And, frankly, I didn't think he had a lot of influence on the MPC in any case... as I remember it, the MPC ignored his views most of the time until the economy was already cliff diving.

Generali

tomterm8 wrote: »

I'm confused, I thought Mr Blanchflower had already left the MPC. And, frankly, I didn't think he had a lot of influence on the MPC in any case... as I remember it, the MPC ignored his views most of the time until the economy was already cliff diving.

He left in Spring this year.

He consistently voted against the rest of the MPC. IMO he was wrong to argue for cuts in interest rates in 2005 has been shown to be right during the period after that I guess.

Fundamentally, the current mess hasn't been a failure of monetary policy though, more a failure of regulation and imbalances working through the system.

purch

The Base Rate will drop to 1/4 %, sometime in the next 2 quarters.

mewbie_2

purch wrote: »

The Base Rate will drop to 1/4 %, sometime in the next 2 quarters.

You sound very sure. Is that a sign that the medicine is working so well we need ever increasing doses of it?