Mark Carney, the Canada-born Governor of the Bank of England has warned that the British Labour Party’s new leader, Jeremy Corbyn’s economic plans would hurt the poor and elderly - and put Britain’s economic recovery in jeopardy.
Responding to questions at parliamentary committee at Westminster, he said Corbyn’s proposed 'People's Quantitative Easing' policy of printing money to fund social welfare programmes and to curb the independence of the Bank of England would threaten price stability.
His argument is that the less well-off are the worst affected when inflation goes up:
“The people who tend to get hurt the most by inflation are the poor, the elderly, those that can’t hedge themselves – that’s been the experience throughout history and I’m sure that will be the experience in the future if the Bank of England were not to conduct policy not consistent with achieving its mandate from parliament.”
Mr Corbyn's shadow chancellor, John McDonnell has warned that the Bank of England's independence will be reined in if Labour and Jeremy Corbyn come to power.
