I suggest an “all-monetarist shortlist” for appointments to the Monetary Policy Committee in the near future, to address the collective delusions that blessed us with this current bout of inflation.
In terms of fiscal policy, if the wider economic picture does not allow the debt to GDP ratio to fall, then the focus of the markets will be on the need to keep the public finances in shape.
On some issues, he got it wrong. On other issues, he got it right but is misrepresented by some of his cheerleaders. And on other issues, he was right in the context of the time but circumstances have changed.
Recent problems with Silicon Valley Bank and Credit Suisse are examples of the stress that interest rate rises are putting on the financial system. But relaxing monetary policy now risks entrenching inflation.
It exercises its independence selectively, and losses can generate a huge bill for taxpayers with no oversight from ministers.
I cannot think of a time when market confidence was plummeting in both the Chancellor or the Governor of the Bank of England at the same time. If neither is up to the job, both should go.
The Prime Minister and Chancellor will have been hoping for a higher rate rise today. Trussonomics requires a tighter monetary policy.
Of course one must not be complacent. I have worked long enough in the markets to know that when they smell blood there can be trouble.
Nobody is talking about a return to the days of politicians setting interest rates, but it must reckon with its mistakes.
Businesses and employees are only responding to monetary conditions set by the Bank of England, where the real responsibility lies.
His Spring Statement was a missed opportunity despite some welcome measures – and further measures may be unveiled during the months ahead.
In a nutshell, the issue is that tightening monetary and fiscal policy at the same time could force the economy to a stuttering halt.
Control the controllables. So provide assistance, ease the pain, reverse the tax hikes, explain why – and focus on a pro-growth strategy.