Its to do with the narrative of independence; the financial services sector have their guys & gals in control at the BoE, and threaten the Govt. with a lack of confidence if inflation isn't controlled.... and (not just this) Govt. is to weak to call their bluff
Emeritus Prof Christopher May's Post
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Quixoticgeek
In response to this post@ChrisMayLA6 why do we want something like the BoE to be independent? This is something I've never quite understood. Especially as they seem to be not only independent, but unaccountable. Unless I've misunderstood things.
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the theory behind independence is that monetary policy is too important to be left to Govt. which might respond to popular pressures to act in the interests of voters.... economists often present a picture that the monetary supply is a technical issue beyond politics & so its (quasi) control should also be kept beyond politics....
as *political* economist I disagree, but also note that actually through the setting of targets, 'independence' is actually only partial and contested
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