Poor Tony: perhaps he has not noticed that monetary policy has effectively ceased to exist for the last six years or so as interest rates at or near zero have gutted it as an instrument of policy
Is he really unaware that interest rates at or near zero is monetary policy? And is he also insisting that QE isn’t monetary policy?
It seems Mr Carney should look at what happened before he got here. From 2009 to 2012 HM Treasury borrowed (as I recall, but I think I am right) £426 billion and over the same period the Bank of England repurchased £375 billion of gilts. If that was not the Bank funding the deficit what was it Mark? Please tell?
Erm, it was monetary policy?