The Adam Smith Institute (ASI) proposes scrapping the Bank of England's Monetary Policy Committee (MPC), and instead use quantitative easing instead of interest rates to conduct normal monetary policy, and abandon the existing inflation target in favour of targeting nominal Gross Domestic Product (GDP). In a paper published on Monday, ASI's director general John Hawksworth argues that the MPC has failed to deliver its stated aim of keeping inflation at 2%.
The Adam Smith Institute (ASI) proposes scrapping the Bank of England's Monetary Policy Committee (MPC), and instead use quantitative easing instead of interest rates to conduct normal monetary policy, and abandon the existing inflation target in favour of targeting nominal Gross Domestic Product (GDP). The Bank of England was accused by ASI director, Eamon Butler, of doing a "very poor job of managing our money" and creating "artificial booms, followed by genuinely painful busts, through decades of following their unreliable discretion".