Clarke accused of creating 'boomlet'
Friday 18 October 1996
Tim Congdon, chief economist at the City firm Lombard Street Research and a member of the Chancellor's Panel of Independent Forecasters, said the pressure of an impending general election was putting Britain's economic stability at risk.
Professor Congdon said Mr Clarke deserved credit for four years of steady growth and low inflation. "However, Britain's new-found financial stability is in jeopardy," he writes in his latest client newsletter.
It was too soon to be sure that there would be a "Clarke boom", in a direct parallel to the Maudling, Barber and Lawson boom, he said. But he added: "The phrase 'Clarke boomlet' would be reasonable."
Professor Congdon, a well-known monetarist, points to rapid monetary growth since the start of 1995, marked increases in the prices of assets such as housing and land prices and brisk consumer spending as signs of boom conditions.
There was a worrying conflict between the Bank of England's foreboding about inflation dangers and Mr Clarke's complacency, Professor Congdon argues.
He concludes: "The meetings-and-minutes framework of monetary policy still leaves too much power over interest rates in political hands. It would be better if interest rate decisions were taken by the Bank of England, not in Whitehall, and so were more thoroughly depoliticised."
Diving in at the deep end is no excuse for shirking the style stakes
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...