Tax expert Richard Murphy, who advises the Labour leadership hopeful and is widely credited as the mastermind of so-called Corbynomics, said yesterday that the Bank is beholden to parliament.
“Bank of England governors are democratically elected politicians,” Murphy told the BBC. “If we have governors who think they are over and above the rule of democratically elected politicians, then I’m afraid to say, yes, they should be on the next plane.”
Like Corbyn, Murphy is a proponent of “the people’s QE”, a proposal which would involve the Bank printing money to be used for investment in public services such as housing developments, energy and transport.
Murphy dismissed suggestions yesterday that the Bank may not want to participate in such a scheme, saying: “There is no such thing as Bank of England independence. There never has been.”
He added: “It’s a fiasco put together, a facade created to appease people, to put forward a presentation of something that doesn’t exist.”
“Jeremy Corbyn believes it is right that government sets the Bank’s mandate, but has made not other commitments,” a spokesperson for his campaign said.