The Guardian view on the Bank of England’s £120bn bill: power without accountability | Editorial
Quantitative tightening has blurred the line between monetary and fiscal policy, leaving ministers accountable for decisions they cannot directly controlWhen Labour made the Bank of England independent in 1997, the idea was that the Bank set interest rates while the Treasury taxed and spent. Monetary policy was in Threadneedle Street, fiscal policy in Whitehall. But in August the Bank of England quietly slipped out that its key policy could cost the Treasury £120bn. That policy – quantitative tightening (QT) –…
Source: www.theguardian.com