Former Bank of England policymaker recommends selling pound, Prime Minister Truss’ policy ‘incoherent’

Former Bank of England Monetary Policy Committee (MPC) member Danny Branchflower has criticized Prime Minister Truss’ economic plans and said investors should “short the pound”. rice field.

Blancheflower argued that the government’s plans did not go far enough in helping low-income earners. A member of the MPC from 2006 to 2009 and now a professor of economics at Dartmouth College, he remains critical of government policy.

After an interview with Prime Minister Truss in New York about this week’s small supplementary budget was published, Branchflower tweeted that the prime minister’s policy was incoherent.

Done many interviews & written several columns on @trussliz and her disastrous economic policies so far I have said they are in ‘total disarray’ but seems inadequate as pronouncements get worse daily I have never in my fifty years of doing economics seen anything as bad as this

— Professor Danny Blanchflower economist & fisherman (@D_Blanchflower) September 20, 2022

Branchflower also voiced concerns about the UK’s economic outlook and suggested shorting the pound. The Bank of England expects a recession by the end of the year.

Short the pound

— Professor Danny Blanchflower economist & fisherman (@D_Blanchflower) September 21, 2022

Worries about Britain’s economic growth have already caused a sell-off in the pound, which fell to its lowest level since 1985 near $1.13 on Monday. Investors fear Truss’ plan to revive the economy will force the government to borrow significantly more, putting more pressure on public finances. Britain’s current account deficit is already the largest since Bloomberg began keeping track of it in 1997.

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news-rsf-original-reference">Danny Blanchflower Criticizes Truss and Says Short the Pound (1)(excerpt)