Gosling's Grouse: An open letter to the Chancellor…

One of the surest things in the markets at the moment is that the Bank of England will miss its inflation target of 2% and the governor, Mervyn King, will have to write a letter to the Chancellor.

So, inspired by Dr Andrew Sentance, who suggested at last week’s M&G inflation conference journalists could have a bit of fun doing their own version of the letter, I thought I would have a go … Dear George, Now we have been doing this for a year, I feel like we are getting to know each other – it is that time of the month. We have missed the 2% target again. In fact, it has happened so many times over the last five years I cannot even remember why it was decided 2% was a good number. Is there anyone over there at the Treasury who has any idea who set it at 2%? It is so long ag...