22 Jan 2011
Memo to Mervyn King: Pick up the phone and call Caroline Lucas….
Derek Wall is former Principal Speaker of the Green Party. He keeps a regular blog from an eco-socialist perspective at Another Green World whilst regularly contributing to the Morning Star.
Monetary policy is essential. Since 1997 the UK economy has been run primarily not by the government but by the Monetary Policy Committee of the Bank of England. Nine men and even sometimes a women meet monthly and vote whether to put interest rates up, down or on hold. It is never revealed what kind of coffee they drink but it is no secret that their grail is the inflation target. They have to achieve an inflation rate measured by the Consumer Price Index of 2% plus or minus 1, i.e they have to keep inflation within a band between 1 and 3%. If they fuck up, they must write a letter of grovelling apology to the Chancellor of the Exchequer. This was quite scary when the incumbent was Gordon Brown, I suspect he would have taken out his glass eye and thrown it out them in rage, when the letter was delivered. It is doubtful perhaps whether George Osbourne or his likely Labour successor would get stressed when it was delivered.