The interdependence of economic policy options, as identified by the International Monetary Fund more than 50 years ago, is implicit in Lord Skidelsky’s observation that monetary policy “is neither particularly effective nor politically neutral” ( Letters, December 12).

Democracy is traduced when the “unelected technicians” of a central bank determine the “choices of inflating or deflating, of favouring debtors or creditors, of selectively bailing out some and not others, of guaranteeing some private sector liabilities and not others, [and] of allowing or preventing banks to collude”. (Acknowledgment to Professor Axel Leijonhufvud, “Out of the corridor”, 2009).

G R Steele
Reader in Economics,
Lancaster University Management School, UK

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