Maintaining economic calm not possible - MPC member

The UK economy is perpetually subjected to shocks and pressures, rendering hopes of maintaining financial stability indefinitely "over-optimistic", Monetary Policy Committee (MPC) member Paul Fisher said last night.

Fisher, speaking at the University of Warwick, said the responsibilities of the incoming Financial Policy Committee (FPC) - detecting and reducing threats to the financial system - were a "tough ask". He warned stakeholders against harbouring unrealistic expectations about what it can achieve. "The UK economy is constantly subject to shocks and varying pressures, many of them from abroad, which cause fluctuations in economic activitym," he said. "The job of policymakers is to recognise and assess such developments, and subsequently take actions to mitigate their impact. "Once ac...