Wednesday, October 12, 2016

Theresa May Slams Central Bank Induced Low Interest Rates

Judy Shelton, a Donald Trump adviser, notes in an op-ed in today's Wall Stree Journal:
British Prime Minister Theresa May took on her own nation’s central bank in an Oct. 5 speech at her Conservative Party’s annual conference. “People with assets have got richer,” she said. “People without them have suffered. People with mortgages have found their debts cheaper. People with savings have found themselves poorer.”

The “bad side effects” of the Bank of England’s “superlow interest rates and quantitative easing,” Mrs. May said, have taken a toll on social and political relations.
Unfortunately, while the Prime Minister may get the problem correctly, her solution is horrific: more government intervention. The Wall Street Journal has reported:
In an unusual move, Mrs. May also signaled that her government would seek to address the side effects of the easy-money policies pursued by the Bank of England and other central banks since the financial crisis. The Bank of England’s ultralow interest rates and asset purchases provided “emergency medicine” for the economy but have worsened inequality, she said...

Seeking to appeal to traditional supporters of the main opposition, the center-left Labour Party, the prime minister vowed to reshape policy to spread wealth more evenly, protect jobs and “repair” free markets when they didn’t work properly, though she didn’t detail how.

No comments:

Post a Comment