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10 December 2008

Monetary Policy Committee Appointment

The Chancellor today announced that David Blanchflower, external member of the Monetary Policy Committee (MPC), will step down when his term expires at the end of May 2009.  In a letter to the Chancellor, David said:

“My term on the MPC runs out on 31 May 2009. I am writing to inform you that I will not be seeking a renewal. My intention all along was to only serve a single term, having been given three years sabbatical leave from Dartmouth. I will, of course, complete my full term.

I very much support the remit that the MPC has been given. It allows for the flexibility which is crucial in these tough times. I have much valued the independence given to me as an external member of the Committee. It is crucial that membership of the MPC fully represents a broad range of views”.

In his reply to David Blanchflower the Chancellor said:

“I would like to take this opportunity to thank you for your major contribution to the work of the committee since 2006. In these difficult times, it is important that we have people that energetically put forward expert and challenging analysis and views to help shape the debate.

I hope that you will continue to make a significant contribution to the global economic debate in the years ahead.”

The position for an external MPC member will be advertised shortly, alongside a timetable for making the appointment, consistent with the new process for external MPC appointments announced by the Chancellor in June 2008.

Notes for Editors

1.      The Chancellor set out measures to strengthen the procedure for future appointments to the MPC in a letter to the Treasury Select Committee in June 2008. These included a commitment to advertise vacancies for the Governor and Deputy Governors of the Bank of England and also for external members of the MPC, consistent with the principles of open competition. Further details are set out in the Chancellor's letter to the Treasury Select Committee.

2.      David Blanchflower was appointed as an external member of the Monetary Policy Committee with effect from 1 June 2006. He has attended 30 meetings of the Committee in that time. He has also delivered nine high profile speeches on economic developments in his capacity as an MPC member. He has testified several times before the Treasury Select Committee of the House of Commons and twice in front of the House of Lords Economic Affairs Committee.

3.      David Blanchflower is the Bruce V. Rauner Professor of Economics at Dartmouth College and a Research Associate at the National Bureau of Economic Research. In addition he is also a Research Fellow at the Centre for Economic Studies at the University of Munich and a Research Fellow at The Institute for the Study of Labour at the University of Bonn.

4.      David is a highly respected labour economist who has published widely on wage determination; youth labour markets; entrepreneurship, trade unions and happiness.

5.      Letters referring to appointment.

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