2 The appointment of Dr Martin Weale
Current vacancy
5. The current vacancy on the MPC arose from the
departure of Kate Barker CBE, after nine years as an external
member of the Monetary Policy Committee. We would like to thank
Kate Barker for her considerable contribution to the work of the
Monetary Policy Committee, and wish her well in the future.
6. The Chancellor announced the appointment of Dr
Martin Weale on 5 July 2010.[5]
We took evidence from Dr Martin Weale on 14 September 2010. This
evidence, for which we are most grateful, will be published shortly,
together with Dr Weale's answers to our questionnaire and his
curriculum vitae.
Background on Dr Martin Weale
7. Dr Weale joins the Monetary Policy Committee from
being the Director of the National Institute of Economic and Social
Research (NIESR). Prior to his appointment at NIESR in 1995, he
was a lecturer in Economics at the University of Cambridge and
a Fellow of Clare College It is his stated intention to seek permission
to retain a role as a researcher at NIESR, though he has stopped
all his involvement with NIESR's forecast and policy commentary
upon the announcement of his appointment to the MPC. Dr Weale
was a Houblon-Norman Fellow at the Bank of England from 1986 to
1987. Dr Weale received his Sc. D. in Economics from Cambridge
University in 2006. Dr Weale has appeared before the Treasury
Committee on numerous occasions during his time as Director of
NIESR.
Our evidence
8. In oral evidence, we questioned Dr Weale about
issues currently facing the UK and international economy, as well
as about how he foresaw himself undertaking his role as an external
Monetary Policy Committee member. Topics we questioned Dr Weale
about included:
- The shape of the economic recovery;
- The outlook for the world economy;
- The role of the Financial Policy Committee;
- Quantitative easing;
- Household finances;
- The price and availability of credit;
- The outlook for the labour market;
- The relationship between monetary and fiscal
policy;
- The importance of inflation expectations;
- The recent performance of the Monetary Policy
Committee in achieving the inflation target;
- His reasons for applying to join the Monetary
Policy Committee;
- Weaknesses in the Monetary Policy framework;
- The objectives of the Monetary Policy Committee;
- The origins of the financial crisis; and
- His continuing roles at other organisations.
Conclusion
- We are satisfied
that Dr Martin Weale fulfils our two criteria for appointment
to the Monetary Policy Committee of professional competence and
personal independence. We wish him every success as a member of
the MPC.
5 HM Treasury press notice, Chancellor appoints Dr
Martin Weale as external member of the Monetary Policy Committee,
5 July 2010 Back
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