Frowns to the left of him, chokers to the right, Mervyn's stuck in the middle again

Inflation targeting is failing the UK economy. It is time for the coalition government to reassess it.

The latest inflation figures show that RPI excluding housing is now running at 6.5%, the highest annual rate for 19 years. Asset bubble after asset bubble has dogged the UK economy. The time for change is now, before yet another asset bubble manifests itself. Over the last week or so, the focus has intensified on the interest rate dilemma faced by the Bank of England. At the House of Lords, Lord Peston, the former professor of economics at Queen Mary College, said he found it an "enormous embarrassment" that three members of the Monetary Policy Committee (MPC) had voted for a rise in int...