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Reform of the UK Financial Policy Committee

Duncan, Alfred, Nolan, Charles (2019) Reform of the UK Financial Policy Committee. Scottish Journal of Political Economy, 67 (1). pp. 1-30. ISSN 0036-9292. E-ISSN 1467-9485. (doi:10.1111/sjpe.12228) (Access to this publication is currently restricted. You may be able to access a copy if URLs are provided) (KAR id:75491)

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https://doi.org/10.1111/sjpe.12228

Abstract

We argue that: The FPC should have a wider remit; a much broader membership (covering many specialisms); should be wholly independent of Government and outside the Bank of England; its aim should be to comment publicly and authoritatively on any possible areas of risk to financial stability whilst itself controlling few if any levers of policy. The rationale for these conclusions is that: Macroprudential/financial risks come from many sources; many of these sources are structural and outside of the Bank’s regulatory purview/competence; in a sense the Bank gets to mark its own homework as regards issues such as the SMR, Resolution, appropriateness of capital, effectiveness of ring-fencing etc.; many aspects of macroprudential actions have distributional implications, and so politicians, not the Bank or any other body, should take and justify, or not, these decisions.

Item Type: Article
DOI/Identification number: 10.1111/sjpe.12228
Uncontrolled keywords: Macroprudential policy; monetary economics; risk; financial markets
Subjects: H Social Sciences
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Alfred Duncan
Date Deposited: 22 Jul 2019 10:40 UTC
Last Modified: 09 Sep 2020 12:46 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/75491 (The current URI for this page, for reference purposes)
Duncan, Alfred: https://orcid.org/0000-0003-1246-9386
Nolan, Charles: https://orcid.org/0000-0002-7260-7472
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