Mervyn King Says the Bank of England Is Making a ‘Big Mistake’
Merryn Talks Money
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The Problem With the Academic Profession
Central banks printed a large amount of money during the pandemic when there was no real need to do it. The big mistake is to think that money has absolutely nothing to do with inflation, he says. And indeed, if you'd look at the computer models, which not just the Bank of England, but other central banks use, whatever you do to monetary policy, inflation always comes back to 2%. Why does it do that? Because the model says it has to. It's an assumption.
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