The Bank of England chief economist, Andy Haldane, has often been ‘off message’ when it comes to an analysis of the global financial crash, the banking system and economic policy. Back in 2013, he argued that about the value of the financial sector to an economy. “In what sense is increased risk-taking by banks a value-added service for the economy at large?” He answers, “In short, it is not.” And this is the chief economist of the Bank of England speaking.
Now he has stepped out of line with the prevailing view that the BoE should be hiking rates to follow any move by the Fed. Indeed he reckons the Bank of England should consider cutting rates to the bone and doing even more than applying quantitative easing (QE) ie printing money to increase the amount of credit in banks.
Why? Well, Haldane says that the crises in Greece…
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