Adam Posen’s brief flirtation with the Monetary Policy Committee majority is well and truly over.
At the MPC’s April and May votes, Mr Posen left David Miles as the only member voting for more quantitative easing.
That is unlikely to be the case at next month’s vote, however. In a speech delivered this afternoon, Mr Posen not only calls for more money printing, but also for the Bank to spend the cash on assets other than gilts – an idea that the governor and other Bank staffers have fiercely objected to on the grounds that it would hinder Threadneedle Street’s independence.
Elements of the argument are not new — Mr Posen in September called for the Bank to branch out from buying gilts and do more to spur lending to smaller businesses. Again, he is dismissive of the view that doing more impacts a central bank’s credibility.
But there are also significant differences in today’s speech from what Mr Posen had to say in the autumn. Read more