Will the Conservative Party's reorganisation of the Bank of England go far enough?
As more and more people believe that the Conservative party is set to win the next general election all eyes are now turning to the proposed changes within the regulatory system and the return to favour of the Bank of England. Despite the move to reinstate the Bank of England as the focal point of the UK financial regulatory framework there is a feeling that more needs to be done to expand and improve monetary policy in the future.
For many years the UK government, via Bank of England, has used interest rates purely and simply to control the supply and demand of credit in the market place. However, the ongoing recession has shown that interest rates alone may not be enough to protect the economy in the future. The MPC has ultimate control of a number of monetary policies which can be introduced at the drop of a hat although individual specific policy available appears to have been tied to a particular economic climate. Is it time to use every tool in the box together?
Even those who have praised the Conservative party for its stance on the Bank of England believe the party has yet to go far enough in its reorganisation plans as ultimately all of the tools available should be used together to control and direct the UK economy in the future.
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