The end of monetary policy as we know it?

Three former members of the Bank of England's rate-setting committee have urged the central bank to rethink its monetary policy. Dr Deanne Julius, Sushil Wadhwani and Willem Buiter are all part of a new monetary policy forum, set up by Fathom Financial Consulting. The forum is designed to scrutinise the Bank's Monetary Policy Committee (MPC). The former MPC members are now urging the Bank to consider the use of quantitative easing - creating money to buy assets - as a tool for ensuring economic stability. Dr DeAnne Julius told the BBC: "We are clearly at the end of monetary policy as we know it." Link to BBC News

For explanation of Quantitative Easing see earlier blog.