Tories on the BOE
I just read David Cameron’s speech on financial regulation.
I don’t fully follow it. I am especially bemused by the fetishism of the role of the Bank.
Gordon Brown took away from the Bank of England the power to regulate the overall level of debt in the economy?
That’s why with the Conservatives, the Bank of England will be back and we will restore its role in regulating the level of debt in the economy.
We will put the Bank of England back in charge of regulating the overall level of debt in the economy, and allow it to make judgements on what is sustainable and what is not.
I speak from an apparent position of complete ignorance here, I only worked there for a couple of years and my knowledge of economic history may be failing me… but when exactly did the Bank have this power? Seriously, I would be very, very curious to know.
Also how is this that different from the Bank’s current ‘core purpose two:
Core Purpose 2 – Financial Stability
Financial stability entails detecting and reducing threats to the financial system as a whole. Such threats are detected through the Bank’s surveillance and market intelligence functions. They are reduced by strengthening infrastructure, and by financial and other operations.
That aside I especially enjoyed learning that the FSA neglected
entirely a bank’s business model and what they were buying, at what price and with what debt.
So I just want to clarify, the party of free markets now wants a regulator, I assume the BOE, to authorise each and every purchase on any given banks’ balance sheet? We’re going to need a lot of regulators…