Douglas Carswell's Blog

Who should be the next Governor of the Bank of England?

Last week, Labour MP John McDonnell, did something rather sensible. He presented a Bill in Parliament insisting that the next Governor-designate of the Bank of England only get the job if MPs have voted specifically to approve the appointment.

There is growing cross party momentum behind the Bill, of which I am a sponsor. I think it might just happen.

For too long, we have left macro economic decision-making to an elite clique of experts. Look at the state of the economy to see what a mess they’ve made of it. The “experts” drove the economy into a ditch.

Mervyn King, the current head honcho at the Bank, is due to step down next year. Who might replace him?

It sounds to me as if a lot of behind-the-scenes manoeuvring is going on.  But why must it be done behind the scenes, for heaven’s sake? 

This is a public office. The next Governor is going to take decisions that will affect our lives for years to come. The least we can expect is that the candidates for the role give some straight answers, to some straight questions, in public.

For too long there has been a crony, corporatist relationship between central bankers and the real ones that they subsidise through mega bailouts and cheap credit.

If Paul Tucker or John Vickers, both former Bank officials, want the role of Governor of the Bank of England, great. But let them first explain what they did before the bust to prevent the bubble. 

Should Adair Turner, a former cheer leader for Britain’s Euro membership, wants the role, so be it. But he might at least tell us how, having got it so wrong on one of the great macro judgments of the past twenty years, he can now be relied upon to get things right. 

The financial crisis has shown that some of the great and the good are neither very great nor terribly good. We lesser mortals ought to be able to ask a few questions before handing over the keys to the Bank.

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