Osborne and Balls both want to have their monetary cake and eat it

Osborne and Balls have weighed in on the introduction of forward guidance by the Bank of England, and both now seek to ask for what they can't have.

Chancellor George Osborne:

"I also clarified that the Committee may judge it appropriate to deploy explicit forward guidance including intermediate thresholds in order to influence expectations and thereby meet its objectives more effectively.

...

Consistent with the Government's absolute commitment to medium-term price stability and the inflation target of 2 per cent which applies at all times".

Shadow chancellor Ed Balls:

"George Osborne must finally act to support the economy

...

Given the high inflation we have seen over the last couple of years it will be very important that the MPC stays vigilant to inflationary risks."

Both want an increase in aggregate demand, with none of the consequences of higher inflation. How they think the Bank can achieve these aims, only they can know.