Bernanke's sound words will fall flat on deaf ears

Nicolas Padula & Hubert Kucharski write for the Financial Times

Leeds Policy Institute President Nicolas Padula and Head of Research Hubert Kucharski have had their joint letter published in the Financial Times highlighting how Ben Bernanke's consultation risks being ignored by Bank of England policymakers. Nicolas and Hubert wrote:

"Bernanke’s solutions of diversifying models through increasingly qualitative descriptions are sensible. Unfortunately, the BoE’s response to these recommendations looks dismal.

"However, there is a difference between predicting the right trajectory with big errors and predicting the completely wrong one. As a reminder, BoE forecasts claimed the pandemic to be disinflationary. We now know these predictions were quite detached from reality.

"What the BoE desperately needs is a culture change. Without one, we are afraid that Bernanke’s contributions will leave no noticeable change in attitudes towards monetary policy."

You can read the full letter here.