James Moore: Mark Carney’s caught out by the ‘dismal science’
Perhaps we shouldn’t criticise Mark Carney too much. The Governor of the Bank of England has admitted that his first foray into “forward guidance” regarding interest rates didn’t exactly go according to plan.
The reason? Unemployment rates have fallen to the 7 per cent level at which he said the guidance would have to be reviewed far faster than anyone expected.
One might ask what the problem is with that. Shouldn’t we just celebrate? Well, with a tighter labour market comes inflationary pressure which is why he signalled the need for a review when unemployment fell to that level in the first place.
Interestingly, however, this has coincided with inflation – when measured by the Consumer Prices Index – falling to the 2 per cent target for the first time in years.
Economists, are, as usual, divided on what will happen. But one thing they may agree on is that there is good reason for economics being described as the “dismal science”. And if Mr Carney can’t be skilled with his forecasts, then it doesn’t much matter if he’s lucky with the overall outcomes.
- 1 Crystal meth addict 'gouged out his eyes and ate them' while high on drug, Australian MP claims
- 2 Saudi Arabia 'seeking to head United Nations Human Rights Council'
- 3 Irish people are travelling home from all over the world so they can vote to legalise gay marriage
- 4 Witch doctor arrested after forcing newborn baby to walk in Indian village
- 5 Arsenal fan asks the Queen for tickets to the FA Cup final - gets a reply from Buckingham Palace
Ireland's same-sex marriage vote: Dublin in party mood ahead of historic poll result
Saudi Arabia 'seeking to head United Nations Human Rights Council'
Toddler throws a tantrum at the White House – in front of Barack Obama
Irish people are travelling home from all over the world so they can vote to legalise gay marriage
Witch doctor arrested after forcing newborn baby to walk in Indian village
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
Report finds that Britain's wages are the most unequal in Europe
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
The day that Britain resigned as a global power
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...