Thursday, March 11, 2010

Bank of England - new development for Monetary Policy Committee ?

I thought it was a good idea. But our masters at No 10 Downing Street sidestepped having to display my e-petition. My idea is to have backbench MPs choose a prominent economist (not an MP) as an additional member of the Bank of England's (BoE) Monetary Policy Committee (MPC) - known as the Parliamentary Nominee. 

The MPC sets monetary policy for the UK on a monthly basis and is a highly influential body for the UK economy. Obviously its role is being examined in the aftermath of the economic crisis and I hope my suggestion helps.  On the MPC there are currently 5 in-house members  from the BoE and 4 external members who are chosen by the Chancellor. The Parliamentary Nominee would make 10 members. If this causes a voting deadlock in some circumstances (5/5 vote) then give the Chairman (Governor) a casting vote or send for a decision to the full House of Commons. These measures would introduce democratic  'checks and balances'.

The rejected petition can be seen at this link: Parliamentary Nominee
No. 10  says it was rejected because it should have been addressed to Parliament itself. Which given the wording 'suggest to the House of Commons', I thought was a bit nitpicky. Gordon!  you could have won a brownie point.

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