Support 100 years of independent journalism.

  1. Politics
  2. /
19 January 2010

Exclusive — David Blanchflower: “This MPC is not fit for purpose“

"After the election we are going to have to reconsider who sets monetary policy"

By Charlotte Middlehurst

In his economics column for the New Statesman this week, Professor David Blanchflower, a former member of the Bank of England’s Monetary Policy Committee (MPC), says “the MPC’s days are numbered, certainly in terms of its remit and probably its membership. After the election we are going to have to reconsider who sets monetary policy.”

He adds: “The MPC missed the recession entirely . . . The recession was much deeper because of their failure to act. The MPC was asleep at the wheel. Its inability to communicate adequately what quantitative easing is supposed to do suggests it has learned little.”

Blanchflower concludes: “This MPC is not fit for purpose and should be disbanded.”

Professor Blanchflower also criticises his former colleague on the MPC Andrew Sentance, who has warned in recent days that rake hikes might be imminent: “The first rule, for an MPC member, should be to do no harm. He was the one who throughout 2008 denied there was going to be a recession.”

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s global affairs newsletter, every Monday and Friday. A handy, three-minute glance at the week ahead in companies, markets, regulation and investment, landing in your inbox every Monday morning. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A weekly dig into the New Statesman’s archive of over 100 years of stellar and influential journalism, sent each Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy

And he dismisses the decision by the Conservative shadow chancellor, George Osborne, to cut public spending within 50 days of any election, saying: “He seems hell-bent on creating the Osborne Dip.”

We’ve published the column online this evening (two days ahead of the magazine hitting the newstands), so go read it now.