Shame on the Bank of England...
... for bowing to pressure from inflation headbangers and joining the grotesquely-mistimed monetary stampede.
Having stoked an inflationary storm by monetising the post-pandemic recovery with zero rates and extra lacings of QE, it is now committing the opposite error at the worst moment in the cycle by over-tightening into a deepening global downturn.
You don’t have to be a monetarist to see danger in the precipitous contraction of all key measures of the money supply over recent months, even adjusting for the legacy stock of pandemic savings. The key aggregates never came close to turning negative in this way during the 1970s.
The Bank of England and its acolytes have a bad habit of misrepresenting what serious monetarists actually say. It propagates strawman arguments based on a pidgin caricature of the quantity theory of money – an approach best expounded by Keynes (yes, Keynes) in his Tract on Monetary Reform.
Ambrose Evans-Pritchard Telegraph 22 June 2023
The Bank of England increased its key interest rate by a half-point
Most economists expected a quarter-point move.
MarketWatch 22 June 2023
https://www.marketwatch.com/articles/bank-of-england-rate-hike-meeting-today-c3025a0f
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