Sir Mervyn King

Last week saw some important statements on UK economic policy from the chancellor of the exchequer, George Osborne, and the governor of the Bank of England, Sir Mervyn King. I considered the implications for the reform of banking and for the supply of credit and monetary policy in two columns published last week.  I failed to note important implications for fiscal policy. Happily, Jonathan Portes, director of the National Institute for Economic and Social Research did not miss them. Maybe, he noted, we are beginning to see glimmering of light in the policy darkness.

This is what Mr Portes wrote: Read more