adam posen

Claire Jones

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

Claire Jones

Were the minutes of May’s Monetary Policy Committee meeting, out today, dovish or hawkish?

The vote, which left David Miles as the sole member voting in favour of more money printing for the second month in a row, was more hawkish than most had expected. Read more

Claire Jones

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ECB’s big bazooka

Next week’s main event is, of course, the European Central Bank’s second offer of cheap three-year loans.

Attention is fixed on whether the take-up will be greater or less than in December, when the central bank loaned €489bn. Read more

Claire Jones

Our week ahead email helps you track the most important events in central banking. To see all of our emails and alerts visit

Bernanke testimony

Fed chairman Ben Bernanke is due to speak on the economic outlook and federal budget situation on Thursday. He’s up in front of the House Committee on the Budget at 10.00 local time (15.00 GMT) on Thursday. Read more

Adam Posen’s speech today – in which he argues for more quantitative easing and new forms of QE – raises two important issues which I will cover in two posts. Here I will discuss words and deeds at the Bank of England’s Monetary Policy Committee. My second post will cover Mr Posen’s calls for more exotic forms of QE.

A big problem the MPC is causing for those seeking to understand UK monetary policy is that confusion reigns about what it would take to trigger QE2 in Britain. And as so often recently, this is because the Bank of England appears to find evidence to justify policy decisions rather than allow evidence to guide policy. Read more

Claire Jones

Our new week ahead email will help you to track the most important events in the central banking world. To see all of our email and alerts visit

Both of next week’s key events are on Monday. Read more

What timing. On the day that the new coalition government starts down the road of rapid deficit reduction, Adam Posen, external member of the Bank of England’s Monetary Policy Committee, throws a well-aimed grenade into the mix. The questions he asks should make everyone pause for thought.

Today, the new government was displaying its new fiscal probity and claiming this was the route to economic happiness. George Osborne, chancellor, saidRead more