Gordon Brown Wants You for the BoE MPC

Outgoing Chancellor of the Exchequer Gordon Brown wants to advertise for new members for the Bank of England’s Monetary Policy Committee:

Gordon Brown yesterday bowed to pressure to reduce the secrecy surrounding appointments to the Bank of England’s rate-setting body by pledging to advertise the positions.

Making his final appearance before the Treasury select committee as chancellor, the prime minister-elect said he would invite “expressions of interest’’ from economists and other experts for the four outside appointments to the nine-member monetary policy committee.

The advertisements would be more specific about the criteria and skills the Treasury was looking for than under current rules, he said, amid fears that under-qualified people might be appointed.

Last year, four former MPC members raised concerns that Mr Brown might have received advice to appoint a non-economist to replace Stephen Nickell, an economics professor who now heads Nuffield College, Oxford.

The House of Lords’ economic affairs committee last year described the appointments process as one which was “shrouded in mystery and may not always recommend the most suitable candidates”.

Mr Brown also pledged to lay out a timetable for appointments. Mervyn King, Bank governor, has criticised the Treasury for a “very informal” approach resulting in appointments being made “very much at the last minute” instead of in a “timely” fashion.

In Australia, we know all about timely appointments of qualified persons to the Board of the Reserve Bank.

posted on 18 June 2007 by skirchner in Economics, Financial Markets

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