H P Lovecraft peopled his mythical realms with slippery, palpitating cretaures to escape a worse prospect – a human world. Illustration by Sean Phillips
Show Hide image

The best of the NS in 2014: Books

Our best pieces from the past year - in this selection, the best book reviews and author interviews.

Mansplainers anonymous: Men Explain Things to Me by Rebecca Solnit

By Helen Lewis.

Solnit’s lead essay became a viral sensation because many women recognised the experience of having their expertise instantly dismissed because of the lady-shaped package it came in.

The books of revelations: why are novelists turning back to religion?

By Philip Maughan.

There is a sense that, in recent years, novelists have formed part of a rearguard action in response to Richard Dawkins’s New Atheist consensus. Philip Maughan talks to Marilynne Robinson, Francis Spufford and Rowan Williams about God in literature.

How Jim fixed it: the strange, dark life of Jimmy Savile

By Rachel Cooke.

It is impossible to look back on the world of light entertainment in the Savile era and not come to the conclusion that it was strikingly weird.

“One man who made history” by another who seems just to make it up: Boris on Churchill

By Richard J Evans.

The book reads as if it was dictated, not written. All the way through we hear Boris’s voice; it’s like being cornered in the Drones Club and harangued for hours by Bertie Wooster.

David Mitchell, the master builder

By Erica Wagner.

When he was a child, the novelist David Mitchell drew maps. Now he creates worlds.

How James Joyce’s Dubliners heralded the urban era

By Eimear McBride.

It is through Joyce’s intimate rummagings through the city’s yens and wardrobes that we come closest to identifying its inhabitants.

The book that will make you quit your job

By Sophie McBain.

Paul Dolan believes all humans strive for happiness, which he defines as a combination of pleasure and a sense of purpose. The problem is that we are often very bad at maximising our own well-being.

Lena Dunham is not real

By Helen Lewis.

Lena Dunham’s Not That Kind of Girl is a confessional book where you cannot be sure if the confessions are true: it’s either a brilliantly ironic subversion of the form, or a deeply wearying put-on by someone who has no sense of who they are when no one is watching.

Too much information: how scientists and historians captured the brains of Amis and McEwan

By Leo Robson.

Novels by both authors seems to be creaking under the burden of researched fact and rehearsed message, but there was a time when their impulses flowed in the opposite direction.

Wilfred Owen: The Peter Pan of the trenches

By Rowan Williams.

The anti-heroic reading of the First World War did not begin with Blackadder - Wilfred Owen has far more to answer for than Richard Curtis, says the former Archbishop of Canterbury.

Phalluses and fallacies: the poetry of sex

By Germaine Greer.

All poetry is driven by sex, whether or not it acknowledges the impulse.

The moral universe of H P Lovecraft

By John Gray.

The weird realism that runs through Lovecraft’s writings undermines any belief system – religious or humanist – in which the human mind is the centre of the universe.  

The unfinished battles of Waterloo

By Simon Heffer.

How did a hamlet in Belgium become immortalised in the names of streets, districts, parks and buildings all over Britain? These five books, published in anticipation of the bicentenary of the Battle of Waterloo, explain why.

Show Hide image

Leader: Mark Carney — a rock star banker feels the heat

Rather than mutual buck-passing, politicians and central bankers must collaborate in good faith.

On 24 June, the day after the EU referendum, the United Kingdom resembled a leaderless state. David Cameron promptly resigned as prime minister after his humiliating defeat. His closest ally, George Osborne, retreated to the safety and silence of the Treasury. Labour descended into open warfare; meanwhile, the leaders of the Leave campaign appeared terrified by the challenge confronting them and were already plotting and scheming against one another.

The government had not planned for Brexit, and so one of the few remaining sources of authority was the independent Bank of England. Its Canadian governor, the former Goldman Sachs banker Mark Carney, provided calm by announcing that Threadneedle Street had performed “extensive contingency planning” and would not “hesitate to take additional measures”. A month later, the Bank cut interest rates to a ­record low of 0.25 per cent and announced an additional £60bn of quantitative easing (QE). Both measures helped to avert the threat of an immediate recession by stimulating growth and employment.

Since then the Bank of England governor, who this week gave evidence on monetary policy to the economic affairs committee at the House of Lords, has become a favoured target of Brexiteers and former politicians. Michael Gove has compared Mr Carney to a vainglorious Chinese emperor and chided him for his lack of “humility”. William Hague has accused the Bank of having “lost the plot” and has questioned its future independence. Nigel Lawson has called for Mr Carney to resign, declaring that he has “behaved disgracefully”.

At no point since the Bank achieved independence under the New Labour government in 1997 has it attracted such opprobrium. For politicians faced with the risk, and the reality, of economic instability, Mr Carney and his colleagues are an easy target. However, they are the wrong one.

The consequences of loose monetary policy are not wholly benign. Ultra-low rates and QE have widened inequality by enriching asset-holders, while punishing savers. Yet the economy’s sustained weakness as well as poor productivity have necessitated such action. As Mr Osborne consistently recognised when he was chancellor, monetary activism was the inevitable corollary of fiscal conservatism. Without the Bank’s interventionism, government austerity would have had even harsher consequences.

The new Chancellor, Philip Hammond, has rightly taken the opportunity to “reset” fiscal policy. He has abandoned Mr Osborne’s absurd target of seeking to achieve a budget surplus by 2020 and has promised new infrastructure investment in his Autumn Statement on 23 November.

After years of over-reliance on monetary stimulus, a rebalancing is, in our view, necessary. Squeezed living standards (inflation is forecast to reach 3 per cent next year, given the collapse in the value of sterling) and anaemic growth are best addressed through government action rather than a premature rise in interest rates. Though UK gilt yields have risen in recent weeks, borrowing costs remain at near-record lows. Mr Hammond should not hesitate to borrow to invest, as Keynesians have long argued.

The Bank of England is far from infallible, of course. In recent years, its growth and employment forecasts have proved overly pessimistic. Mr Carney’s immediate predecessor, Mervyn King, was too slow to cut rates at the start of the financial crisis and was ill-prepared for the recession that followed. Central bankers across the developed world, most notably the former Federal Reserve head Alan Greenspan, have too often been treated as seers beyond criticism. Their reputations have suffered as a consequence.

Yet the principle of central bank independence remains one worthy of defence. Labour’s 1997 decision ended the manipulation of interest rates by opportunistic politicians and enhanced economic stability. Although the Bank’s mandate is determined by ministers, it must be free to set monetary policy without fear of interference. The challenge of delivering Brexit is the greatest any British government has faced since 1945. Rather than mutual buck-passing, politicians and central bankers must collaborate in good faith on this epic task.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage