BoE’s Vlieghe dismisses neo-Fisherian idea that low rates cause low inflation
MPC member says academic arguments are not particularly compelling
The Bank of England's Gertjan Vlieghe challenged ‘neo-Fisherian' economists in a speech on November 28, saying they were wrong to suggest a long period of low rates could create lower inflation.
"I believe this is just a case of erroneously reversing the causality", Vlieghe said in remarks at Sheffield University. The external monetary policy committee member said just because the two have been observed together, it does not mean low rates cause low inflation. "Nobody actually believes that
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