If you’ve ever experienced high inflation, you’re unlikely to forget it. In the decades between the end of World War II and the creation of Europe’s new currency, Germany’s central bank set the global standard for sound finance and monetary conservatism. Germany’s folk-memory tied the hyperinflation of the 1920s to the destruction of German society and the rise of Adolf Hitler. “Never again” was the idea that motivated, and to some degree still motivates, German monetary policy.
Former Bank of England policy maker Charles Goodhart said U.K. finance minister George Osborne may struggle to find a successor for central bank Governor Mervyn King untainted by the financial crisis and banking scandals.
The Bank of England should expand its toolkit to include interest-rate cuts on reserves and consider steps to aid banks such as buying their bonds or injecting equity into them, said former policy maker Charles Goodhart.
The U.S. Consumer Financial Protection Bureau has told at least four banks that it may sue them over vehicle loans and interest-rate markups by auto dealers that appear discriminatory, according to three people briefed on the matter.
The Bank of England is more likely to change communication policy than its inflation target once Mark Carney becomes governor in July, said Morgan Stanley economists including former central banker Charles Goodhart.