David Blanchflower, a former member of the Bank of England’s interest-rate setting body, has launched a savage attack on Mervyn King, Bank governor, and the monetary policy committee, which he says was “hobbled by ‘group think’” before the financial crisis struck last autumn.
“Governor Mervyn King, the old iron fist of the Bank of England, with his hawkish views on rates, dominated the MPC. Short shrift was given to alternative, dovish views such as mine,” he wrote in a rare insider’s account in New Statesman magazine.
