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Rishi Sunak should scrap Bank of England inflation target to focus on GDP growth, says Jim O’Neill

“It wouldn’t guarantee a V-shaped recovery but it would certainly increase the probability of one. I do suspect there are some people around the Treasury that are probably thinking about things like this.”

NGDP is the value of all goods and services produced in the economy, unadjusted for inflation. Early advocates of targeting it included James Meade, the Nobel Prize-winning British economist, in 1978. The idea was mooted again in a speech by Mark Carney shortly before his appointment as the Bank’s governor in 2013, only to be rejected by the Treasury.

Giles Wilkes, a former Downing Street economic adviser,

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The Bank of England is propping up bloated financial markets but doing the economy no good

On-going QE warped the price of houses and other real assets, widening wealth inequality in the UK and beyond. But it suited governments and powerful financial vested interest – and so it has carried on.

Which brings us to Saunders’ speech. Since it was founded in 1997, the MPC has featured some impressive “outside” members, who aren’t regular Bank of England employees. Kate Barker, the economist, and fund manager Sushil Wadhwani spring to mind. Saunders, too, is a talented “outsider”, formerly with Citibank, whose writings I respect and have followed for many years. This speech, too, should be widely read.

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Economy on track for rapid V-shaped recovery, says Bank of England chief economist

The economy is on track for a short V-shaped recession following early signs that spending has jumped by more than expected, the Bank of England’s chief economist has said.

There has already been a “modest recovery” in spending and business confidence according to real-time indicators, Andy Haldane said.

Mr Haldane argued that early signs such as surveys are “coming in a shade better” than the Bank’s scenario, which already predicted a V-shaped recovery in activity where little long-term damage is done to the economy. This view was dismissed as far too optimistic by many economists, who fear severe long-term damage

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Bank of America, Facebook defied April slump with higher programmatic spend

Dive Brief:

  • Bank of America, Electronic Arts, Facebook, Grubhub and Slack were among the handful of major companies that boosted spending on programmatic advertising last month, defying a broader slump as marketers pulled back during the COVID-19 pandemic, per an announcement that researcher MediaRadar shared with Marketing Dive.
  • Categories such as education and training, toiletries and cosmetics and technology increased spending by more than 35% in April from the prior month, according to the analysis of which industries were most affected by the health crisis.
  • Amid pandemic lockdowns that kept people at home, the travel industry’s programmatic ad spending plunged
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