By Norma Cohen, economics correspondent
In the months and years since the financial crisis began, the Bank of England has been notably reluctant to fall on its collective sword in connection with its oversight role, or even to murmur a modest “mea culpa” in connection with any aspect of it.
Bank of England. Image by Getty
The most it has done has been to insist that it did not have the tools necessary to actually stop excesses from happening even where it could spot them. At least, that has been its public stance.
But in private, economists at the Bank may have a more nuanced role about their discipline and more generally, about what needs to be done to prevent another financial crisis.
No, this isn’t a post about quantitative easing – which genuinely is a case of creating money (banking reserves) and using it to buy assets in a bid to boost economic output and inflation.
This is a post about the lack of understanding in the UK government that the private sector – whether it is a pension fund, a sovereign wealth fund or wealthy individuals – do not simply give the nation assets.