Economists: Bank of England ignored inflation signs

Several high-profile economists have rounded on Bank of England governor Mervyn King for ignoring dat...

Several high-profile economists have rounded on Bank of England governor Mervyn King for ignoring data they claim could have forewarned of inflationary pressures. The team, including New Star’s Simon Ward and Invesco Perpetual’s John Greenwood, criticised King in an open letter to the Financial Times. “In a letter in September 2006, we warned that rapid growth in the quantity of money would lead to higher inflation,” they wrote. “Our fears have been vindicated.” The unit said they welcome King’s recognition, in his recent letter to the UK Chancellor on missing inflation targets, that...