Duncan, A. and Nolan, C. (2020) Reform of the UK Financial Policy Committee. Scottish Journal of Political Economy, 67(1), pp. 1-30. (doi: 10.1111/sjpe.12228)
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Abstract
We argue that: The FPC should have a wider remit; a much broader membership (covering many specialisms); should be wholly independent of Government and outside the Bank of England; its aim should be to comment publicly and authoritatively on any possible areas of risk to financial stability while itself controlling few, if any, levers of policy. The rationale for these conclusions is that: Macroprudential/financial risks come from many sources; many of these sources are structural and outside of the Bank’s regulatory purview/competence; in a sense, the Bank gets to mark its own homework as regards issues such as the SMR, resolution, appropriateness of capital, effectiveness of ring‐fencing etc.; many aspects of macroprudential actions have distributional implications, and hence, politicians, not the Bank or any other body, should take and justify, or not, these decisions.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Nolan, Professor Charles and Duncan, Mr Alfred |
Authors: | Duncan, A., and Nolan, C. |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | Scottish Journal of Political Economy |
Publisher: | Wiley |
ISSN: | 0036-9292 |
ISSN (Online): | 1467-9485 |
Published Online: | 31 July 2019 |
Copyright Holders: | Copyright © 2019 Scottish Economic Society |
First Published: | First published in Scottish Journal of Political Economy 67:1-30 |
Publisher Policy: | Reproduced in accordance with the publisher copyright policy |
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