Thursday, 16 June 2022
In 1997, neither Tony Blair nor Gordon Brown took a pay cut despite having cut the responsibilities of the First Lord of the Treasury and of the Chancellor of the Exchequer by at least half when they surrendered democratic political control of monetary policy, a surrender that had been in neither main party's manifesto and which no Conservative Government had ever attempted. And here we are.
A sovereign state with its own free floating, fiat currency has as much of that currency as it chooses to issue to itself, with readily available fiscal and monetary means of controlling any inflationary effect. Those means therefore need to be under democratic political control.