Haldane: BoE stepped up efforts to solve ‘twin deficit’ of economic understanding, trust
By Chris Giles
The Bank of England has stepped up efforts to engage and educate the whole of Britain as it plays its part in seeking to minimise a a “twin deficit” of understanding and trust in economics, Andy Haldane, its chief economist said on Monday.
Speaking to pupils Nishkam High School, the first Sikh-ethos school in the West Midlands, he said economists must work harder to get their message understood and accepted by the public.
“If economics or economic policy is elitist and inaccessible to most people, it is not doing its job,” Mr Haldane said, adding that “an improved understanding…would probably help many people when making everyday decisions, big and small”.
The BoE’s chief economist lamented the poor knowledge of basic terms among the public. Only one in 10 adults could define gross domestic product, the value of goods and services produced every year, while only 16 per cent could clearly define inflation, he said.
This lack of understanding left the British people more vulnerable to panics and manias, and more likely to take part in bank runs and other destructive events such as booms and busts which are amplified by herd behaviour. He did not mention whether he thought the Brexit vote was a self-destructive economic wound inflicted by the British people.
FCN: Haldane: BoE stepped up efforts to solve ‘twin deficit’ of economic understanding, trust … FT November 27, 2017 at 03:40PM