THE GUARDIAN: Diplomatic memos reveal Bank governor thought top Conservatives lacked experience to deal with deficit
The head of the Bank of England privately criticised David Cameron and George Osborne for their lack of experience, the lack of depth in their inner circle and their tendency to think about issues only in terms of their electoral impact, according to leaked US embassy cables.
Mervyn King told the US ambassador, Louis Susman, he had held private meetings with the two Conservative politicians before the election to urge them to draw up a detailed plan to reduce the deficit.
He said the pair operated too much within a narrow circle and "had a tendency to think about issues only in terms of politics, and how they might affect Tory electorability". He also predicted that economic recovery would be "a long drawn-out process", since Britain had not been through an economic restructuring.
His apparent pressure on the Tories, a few months before the election, gives further credence to the claim that King was central in persuading leading coalition figures to back a far more dramatic deficit-reduction programme than any politician advocated during the election campaign. He has recently been criticised by members of the Bank's monetary policy committee for straying into politics. Read on and comment >>> David Leigh and Patrick Wintour | Tuesday, November 30, 2010
THE GUARDIAN: Leaked US cables show governor of Bank of England's 'thirst for power has clouded his judgment', former colleague says
David Blanchflower, a leading economist and former member of the Bank of England's monetary policy committee, has called on Mervyn King to quit as governor of the Bank of England following leaked US cables that he claims show King's "thirst for power and influence ... has clouded his judgment one too many times".
In his toughest attack on his former colleague to date, Blanchflower seized on revelations that suggest King may have been central in persuading leading coalition figures to back a far more dramatic deficit-reduction programme than any politician advocated during the election campaign.
Blanchflower, who stepped down from the policy committee last year and who has warned the coalition government's deficit reduction programme could lead to a recession, seized on the information revealed in the latest tranche of leaked US embassy cables released by WikiLeaks to say King's position was now untenable. >>> Hélène Mulholland, political reporter | Wednesday, November 01, 2010
THE GUARDIAN: In showing his true party political colours, Mervyn King has compromised the Bank of England's independence
Mervyn King is one smart guy and that has always been abundantly clear. Unfortunately, it is his thirst for power and influence that has clouded his judgment one too many times. He has now committed the unforgivable sin of compromising the independence of the Bank of England by involving himself in the economic policy of the coalition. He is expected to be politically neutral but has shown himself to be politically biased and as a result is now in an untenable position. King must go. >>> David Blanchflower | Wednesday, November 01, 2010
