Tuesday, February 15, 2011

David Gauke: Inflating our way out of financial crisis is nonsense

I had the pleasure yesterday of attending part of Conservative Intelligence's Going for Growth conference.

I just caught the end of John Redwood (who to the disappointment of the man from Gatwick airport failed to mention air transport in his talk on transport infrastructure, although he was apparently talking about his journey from Woking to London), but managed to catch the entire of David Gauke's speech and Q&A session.

With inflation figures announced today and the view from many (including Douglas Carswell, the Spectator and Daniel Hannan) that the Bank of England's plan is to inflate our way out of debt, his comments on this were interesting. Especially as many people seem to think that this secret strategy of Meryn King's has the approval of the Treasury.

So what was David Gauke's view when asked about inflation. "The idea we can inflate our way out of the financial crisis is frankly nonsense" was his response

Does that put this idea to bed then?

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