“The Labour Party has announced that it would review the mandate of the Bank of England with an eye to adding to its objective so that the British central bank doesn’t just target inflation, but also employment and economic growth, if it gets into power in 2020. The Shadow Chancellor John O’Donnell has given the assurance that it wouldn’t affect the independence of the BOE, which has been one of the key factors that has increased the credibility of central banks since the early 1990s.
But, it is worth refreshing the objectives of central banks, especially as key relationship among monetary policy variables have changed alongside the structure of the economy.”
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