4 ms·
It wasn't a contradictory goal. The sect Truss belongs to considers that aggregate demand is solely a matter for the central bank to sort out, and that it has
by neilwilson 4y ago
It wasn't a contradictory goal.
The sect Truss belongs to considers that aggregate demand is solely a matter for the central bank to sort out, and that it has to respond to the fiscal setting of the government. Not the other way around.
This is enshrined in law at s11 of the Bank of England Act 1998.
"In relation to monetary policy, the objectives of the Bank of England shall be—
(a)to maintain price stability, and
(b)subject to that, to support the economic policy of Her Majesty’s Government, including its objectives for growth and employment."
- actionablefiber 4y agoThe BoE had to completely flip its policy to rescue pension funds which were getting margin calls because of Truss and Kwarteng's mini-budget destroying the gilt market, so I guess you're right.