BOE’s Haldane Says QE Size Challenges Central Bank Independence By November 28, 2020, 9:56 AM EST BOE’s Haldane Says QE Size Challenges Central Bank Independence By November 28, 2020, 9:56 AM EST SHARE THIS ARTICLE Photographer: Simon Dawson/Bloomberg Photographer: Simon Dawson/Bloomberg The extraordinary expansion in central banks’ balance sheets over the past decade poses a challenge to the independence of monetary policy, Bank of England Chief Economist Andy Haldane said. Central bank balance sheet expansions have, for some people, blurred the distinction between monetary and fiscal policies and posed questions about central bank independence,” he said in a speech on Saturday. […] The decision to eventually withdraw monetary stimulus “will be more politicized,” Philipp Hildebrand, a former Swiss central bank chief, said this month. Haldane said the BOE’s operational independence and its mandatory inflation target offer “strong protection against such fiscal dominance from a legal, market and political perspective.” […] He also said record-low interest rates have reduced the effectiveness of central bank actions in stimulating demand, justifying a larger role for fiscal policy.
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