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The implication of this

I have reviewed the Bank of England’s latest survey of opinion on inflation, which has just been published. The results are, to be kind, quite bizarre.

Most people rightly know inflation is more than 5%, but quite bizarrely a third think it has been less than that

When asked how inflation will change people are hopelessly wrong in the short and medium terms

OK, the general populace are hopelessly ill-informed when it comes to inflation, monetary policy and perhaps macroeconomics in general. Shrug, let’s work with that then.

This means that politics – driven as it is by what the general populace believes – is not to be the driver of inflation, monetary policy and macroeconomics in general. Because the motivating forces behind politics are hopelessly ill-informed.

So, we leave monetary policy to the independent central bank then, not the politically driven Chancellor.

Sounds like a plan.

7 thoughts on “The implication of this”

  1. The Meissen Bison

    we leave monetary policy to the independent central bank

    “Independent” only in the sense that like all of Whitehall it openly and with impunity opposes government as witness the undermining of Liz Truss or the abject failure to keep within the 2% inflation target.

  2. “When asked how inflation will change people are hopelessly wrong in the short and medium terms”

    Well of course they are you wazzock. If you’d asked me about inflation, I’d have said “Invest in wheelbarrow firms, son. That’s the future.”

    Most economics are too complicated for economists ( and especially him or other “experts” like Paul Mason or Willy Hutton), how does he think old Mrs Bloggs paying 90p for a pint of milk out of her pension feels ?

  3. What TMB said. The idea that State bodies (however nominally ‘independent’) are not ‘political’ is naivety of the highest order.

  4. But, bizarrely, these experts did not appear to consider the risk of doubling interest rates twice over the period of 3 months and then following up with 4 successive increases of 0.75% might have on the financial stability of banks…

  5. the general populace are hopelessly ill-informed when it comes to macroeconomics in general.
    Yep. They have that advantage. As they do with astrology, alchemy & the more obscure regions of theology. They ain’t that stupid.

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