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The prime minister’s economics guru Professor Patrick Minford believes it would be “insane” to rip up the mini-budget.
He told BBC Radio 4’s PM programme: “It’s really important we don’t do something really stupid at this point.
“Liz Truss’s policies for growth are absolutely right and to be thrown off them by a bit of market turbulence is insane.”
He argued against U-turns, saying the Bank of England “needs to be much more active in its policies of intervention in the gilts market”.
Asked if he had predicted the market turmoil triggered by the mini-budget, the economist said: “Obviously, at the moment, the markets are facing enormous turbulence because of worldwide tightening of money, and so there’s a great deal of nervousness about.
“But I think the way to handle that is to deal with market turbulence in our gilts market directly through QE (quantitative easing) and then to keep the policies going.”
He told BBC Radio 4’s PM programme: “It’s really important we don’t do something really stupid at this point.
“Liz Truss’s policies for growth are absolutely right and to be thrown off them by a bit of market turbulence is insane.”
He argued against U-turns, saying the Bank of England “needs to be much more active in its policies of intervention in the gilts market”.
Asked if he had predicted the market turmoil triggered by the mini-budget, the economist said: “Obviously, at the moment, the markets are facing enormous turbulence because of worldwide tightening of money, and so there’s a great deal of nervousness about.
“But I think the way to handle that is to deal with market turbulence in our gilts market directly through QE (quantitative easing) and then to keep the policies going.”
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