BOE Independence Still Worth Defending, Says Turner

The transcript discusses the views of Charles Goodhart on central bank independence, highlighting potential conflicts between central banks and treasuries. It explores future economic policies, including the possibility of fiscal deficits financed by central banks, while maintaining independence. The effectiveness of central banks in achieving low inflation is acknowledged, but the need for broader objectives is emphasized. The transcript also critiques the reliance on inflation targeting before 2008, noting the unresolved global debt issue and the necessity of low interest rates.

What did Mr. Charles Goodhart suggest about the future relationship between central banks and treasuries?

• Central banks will lose all independence.

• There will be no change in their relationship.

• Central banks will become more powerful.

• Treasuries and politicians will dominate.

What is one potential policy tool mentioned for dealing with a global economic downturn?

• Increasing interest rates

• Reducing government spending

• Fiscal deficits financed by central bank money

• Privatizing public assets

What has been a significant achievement of central banks according to the transcript?

• Eliminating public debt

• Increasing employment rates

• Maintaining low and stable inflation

• Achieving high economic growth

What was a major oversight in economic policy before 2008?

• Focusing solely on inflation targeting

• Ignoring technological advancements

• Overestimating the role of fiscal policy

• Underestimating the impact of globalization

What is a consequence of maintaining very low interest rates?

• Rapid economic growth

• Creation of new economic problems

• Increased public confidence

• Higher inflation rates