The Sage of Ely can’t read a chart

The claim:

So we have a choice, which is to maintain the credibility of theoretical monetary policy, which in the era of net-zero inflation rates that we have witnessed for the last decade


Even a slight acquaintance with reality would be useful, don’t you think?

This even before we get to the point of QE and all that, which was to prevent deflation etc….

8 thoughts on “The Sage of Ely can’t read a chart”

  1. Over the last decade we have had negative “real” (inflation-adjusted) interest rates. Maybe he has confused the two?

  2. This is amusing too

    here is Sir Charles Bean from September 2010.

    “It’s very much swings and roundabouts. At the current juncture, savers might be suffering as a result of bank rate being at low levels, but there will be times in the future — as there have been times in the past — when they will be doing very well.

    I am sure plenty of savers are shouting we are still waiting Charlie right now. Indeed Mr.Bean’s inability to look ahead accurately continued.

    The Deputy Governor said the Bank’s 0.5  per cent base rate was part of an “aggressive policy” to deal with a “once-in-a-century” financial crisis.

    Just as a reminder Bank Rate is now 0.1% so savers are continuing to have to do this.

    Savers shouldn’t necessarily expect to be able to live just off their income in times when interest rates are low. It may make sense for them to eat into their capital a bit.”

    By contrast Sir Charles Bean has done really rather well. According to the 2012 annual accounts of the Bank of England he had accumulating a pension worth over £3,5 million which was growing at an annual rate of over £400,000 a year. Subsequently he was in charge of the review of UK economic statistics which seems to have gone to ground. Also he was appointed to the Office for Budget Responsibility due to his expertise in forecasting the future.

  3. What’s “net-zero inflation” anyway? Net of what?

    A Spud replies: “Net of inflation, of course. Inflation is a neo-liberal concept anyway, as I explain in my book The Curajus State (?sp).”

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