The Bank of England Financial Policy Committee said that leaving the EU was a financial risk yesterday. You would think that a statement of the obvious but in a highly charged environment it was contentious.
No one should be surprised: central bank independence has always been a neoliberal sham that suggests that life can be compartmentalised into what is political and what is not; what is rational economics and what is subjective opinion. There are no such divides, whether in the NGO or academic worlds, or in Threadneedle Street. To pretend there are is to lie in support of a world view that is both intensely political and deeply oppressive of alternative views.
At the end of the day, the Brexit campaign is not, I suspect, going to upset that world view. The pretence that the Bank of England is independent will be restored soon as a result.
In the European Union, the principle of central bank independence has a quasi-constitutional basis. Article 108 of the Treaty establishing the European Community states that:
“ neither the ECB, nor a national central bank … shall seek or take instructions from Community institutions or bodies, from any government of a Member State or from any other body”.
The Bank of England can only become non-independent if Brexit succeeds.
Why is it that our 0.2 of a Professor is simply ignorant of every subject upon which he pontificates?