The Bank of England whipsawed markets today by leaving its policy stance unchanged, despite hints of a tightening that were given out last month. This variability is not particularly surprising to me, so I just want to comment on some of the deeper issues. I believe that I have discussed these topics in the past on my blog, but since I have many new readers, I will run through my thinking again.Bond Economics
My view is that the shift towards greater “transparency” by central banks since the 1990s has been a mistake. As is entirely typical, the root of the mistake was listening to New Keynesians....
Central Bank Transparency
Brian Romanchuk
http://www.bondeconomics.com/2021/11/central-bank-transparency.html
1 comment:
La garde just said the day before ECB won’t even consider it until 2023
https://www.bloomberg.com/news/articles/2021-11-03/lagarde-renews-pushback-against-market-bets-on-ecb-rate-hike
So you think BOE is then going to raise?
They are in a competitive situation there…
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