O'Neill: If I were Bank of England governor....

Jim O'Neill, the chairman of Goldman Sachs Asset Management (GSAM), would ditch inflation targeting if he replaced Mervyn King as the Bank of England governor as the measure has been "insufficient" over the past decade.

He would also employ other "financial indicators" to condition policy, such as the leverage ratio on commercial banks and the ratio of house prices to personal income, as well as uniting the Monetary Policy Committee and the new Financial Policy Committee into a single entity. In an interview with Bloomberg TV, O'Neill (pictured) said: "I personally believe if you stand back over the past decade or so, inflation targeting as great as it has been for the UK, it has turned out to be not sufficient. So I think some additional tools, or indicators, particularly ones that relate to the role o...