United States, London, Mervyn King discussed on FT Alphachat

FT Alphachat
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Eating principles there's no magic in those words that too by the way would be a bigger change than people think and i think the debate in the united states about whether the federal reserve should follow a rule when it sets monetary policy or should be assessed against a rule which is slightly different thing is i think really a particular manifestation of desire to see what the underlying operating principles i i'm doubtful myself that it could be expressed as a mechanical rule we do know there are people who have who prepared to give it a try yes yes well a non mechanical role released the full is again this will sound obvious but i think it's quite demanding is transparency and accountability here i just wanted to underline the importance of accountability to committees of the legislature committees of congress committees of parliament or this emily and this concern sound as though it's kind of undermining the independence so what do i mean by count ability and it's best summed up and i'm not going to get the words exactly right i quote in towards the end of the book a parliamentary hearing in london when mervyn king and i were testifying to the house commons treasury committee and what americans would call the ranking member the senior member of the committee from the labor party george moody said to us what is all this for these hearings you you come here and and we we ask you questions and you give these eloquent answers then you go away and nothing that we say makes makes any different sorts of ever to what you do and moving gave the maintenance of it i was asked to contribute as as well they asked me with what i thought and we both said the same thing which is so long as the sovereign parliaments decided that the powder said interest rates lies with the bank of england monetary policy committee as an independent body it it must just do that.

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