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The Independence of the Bank Of England: an Update
Author(s) -
Hall Stephen,
Hall Brian
Publication year - 2000
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/1468-0319.00220
Subject(s) - economics , monetary policy , inflation (cosmology) , independence (probability theory) , unemployment , fiscal policy , inflation targeting , macroeconomics , monetary economics , keynesian economics , statistics , physics , mathematics , theoretical physics
In this article, Stephen Hall and Brian Henry reconsider the arguments for further coordination of fiscal and monetary policy in the UK. The recent inflation‐unemployment performance in the UK has been good, but it appears mainly the result of beneficial developments in the world economy. Further improvement in the policy‐making framework in the UK is called for. Many of the present drawbacks could be dealt with by treating fiscal policy on a par with monetary policy. There are arguments that further cooperation is not needed but these are unpersuasive. They recommend the setting up of an independent committee charged with reviewing fiscal decisions, and coordinating these with monetary decisions by the MPC.