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Wednesday 02 November 2016

Government interference has damaged the Bank of England for future Mark Carneys

Press Release
2nd November 2016

Future central bankers in the UK will have to deal with a compromised Bank of England following the government's intervention in Mark Carney's management of monetary policy, according to a leading critic of Bank of England policy.

Prof. Anthony J. Evans, an economist at ESCP Europe Business School in London, says that the government has overstepped its remit in questioning Mr Carney's decisions – with some members calling for his resignation.

"The government has effectively reminded Mr Carney that he answers to them – and that is a dangerous mistake. He has responded robustly, and it is unlikely that this will affect how he runs his office; but I believe that this has compromised the position for future central bankers in the UK, with the independence of the central bank being questioned so openly.
"To call for his resignation is unwarranted: in making forecasts he was only doing his job. Personally, I think that his forecasts are overly gloomy, but he must have absolute independence to make calls as he sees them, or the future efficacy of the Bank of England as an independent body will be questionable. The whole point of the central bank as an independent voice is defeated if policy makers can influence it."

Anthony J. Evans is associate professor of economics at ESCP Europe Business School. He has published in a range of academic and trade journals and is the author of Markets for Managers (Wiley, 2014). His work has been covered by most broadsheet newspapers, and he has appeared on Newsnight and the BBC World Service. He is part of the MOC Affiliate Faculty for the Institute for Strategy and Competitiveness at Harvard Business School, and is a member of the Institute of Economic Affairs' Shadow Monetary Policy Committee.

He specialises in teaching Managerial Economics at the MBA and Executive MBA level. Using a combination of lectures, case discussion and practical simulations he has introduced over 2,000 current and future managers to the economic way of thinking. He has taught for ESCP Europe, Cotrugli Business School, Danube University, and Helsinki School of Economics, as well as designing and managing custom programmes.

Press Contact:

For more information or to speak with Anthony on this topic, please contact Ian Hawkings at BlueSky PR by email or by calling +44 (0)1582 790 704.

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