David Cameron backs activist monetary policy
David Cameron has lined up behind George Osborne in his support for the Bank of England and the presumption that quantitative easing will be introduced in the short-term. The UK government appears to be firmly of the belief that an activist monetary policy is required to overcome the short-term hurdles for the UK economy which if left unaddressed could lead to further problems in the medium to longer term.
There is no doubt that over the last few days we have seen the UK government pushing forward the power and influence of the Bank of England and effectively rubberstamping a more active approach, as seen in the depths of the recession by Mervyn King and his colleagues. This ongoing strategy of building up the influence of the Bank of England is not exactly in tandem with Gordon Brown's previous policy where there were many fallouts and disagreements between the two parties.
Upon entering office David Cameron and his coalition colleagues confirmed that the Bank of England would play a more prominent role in UK regulations and control of the UK economy - and the financial sector in particular. It seems that David Cameron is very much good to his word and is willing to assist the Bank of England where possible.
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