Howard Reed says:
October 28 2016 at 7:03 am
I think it would be best to go back to the pre-1997 system where the Bank of England was under more direct political control. While it is possible to get more political control even under the existing system by appointing a governor of the Bank who is sympathetic to the govt’s political views (and this is probably what McDonnell is aiming for), it’s a more indirect route – it would be easier just to get rid of central bank independence. Having said that, if we are going to have democratic control of economic policy we need to ensure that our democracy is up to the task. The UK’s democracy is fundamentally broken at the moment – most obviously evidenced by the disastrous decision to leave the EU, but also the ludicrous first-past-the-post electoral system and the Tory efforts to gerrymander a permanent majority via boundary changes and changes to the voter registration system. So ideally we would need to fix all that as well and I would like to see Labour talking about electoral reform a lot more and working with the SNP, the Greens and the more sensible elements of the Liberal Democrats to bring about a progressive alliance which could win in 2020.
Richard Murphy says:
October 28 2016 at 7:11 am
That all makes sense Howard
Reed’s essential point there being that if our lot are in power then we should be able to command the Bank of England. But if the other lot are in power then they shouldn’t have that power.
Which violates the most basic rule of politics, doesn’t it? Never let the government have a power that your opponents should not have.