Blog post from London School of Economics & Political Science
Abstract
The MPC at the Bank of England was set up to make independent judgements about interest rate policy. But after studying every decision the Committee made over an eleven year period, Simon Hix, Nick Vivyan and Bjørn Høyland find evidence that by appointing members of the MPC the Chancellor of the Exchequer has been able to alter the balance of votes there. The Treasury still gets to shape the Bank’s decision-making to some extent
