Andy Haldane, Chief Economist at The Bank of England speaks at the University of Melbourne
Andy Haldane, Chief Economist at The Bank of England presented the 2018 Finch lecture at the University of Melbourne on Tuesday 10 April. In his lecture 'How monetary policy affects your GDP', he discusses the impact that monetary policy since the financial crisis has had on the income, wealth and wellbeing of different households.
"Citizens of the UK owe Finch a particular debt of gratitude," said Haldane.
"He led the IMF rescue mission to the UK in 1976. That, in many respects, marked the turning point in the UK's economic fortunes. It heralded the start of a long period of liberalisation and integration of markets in goods, services, people and money. The world economy broadly mirrored those trends towards increased international liberalisation and integration.
"The benefits the world economy has reaped from having pursued that path are now only too clear. Global integration and co-operation has boosted dramatically flows of goods, services, people and monies. Eash is at levels never previously seen. This, in turn, has helped deliver higher living standards and lower levels of poverty in pretty much every country on the planet. Finch would have wholeheartedly approved.
"Looking to the future, however, this wind is at risk of changing direction. The global financial crisis has left lasting scars. That has created pressure to place speedbumps, or in some cases roadblocks, on flows of goods, services, people and monies. One of the key policy challendes ahead will be to prevent the hard-won gains from global intergration and co-operation being lost. The stakes could scarcely be highter.
"Today, I want to discuss a different policy challenge facing policymakers, specifically central banks. It too has risen in prominence since the global financial crisis. It too has posed big questions about the existing policy order. And it too needs, I believe, to be tackled transparently and comprehensively if stability and trust in the international monetary system is to be preserved."
Read the full speech here.