BoE’s King ‘Like a Tyrant,’ Blanchflower Says in New Statesman

Bank of England Governor Mervyn King runs the country’s central bank like a tyrant and his retirement should pave the way for a cleaning out and the introduction of fresh blood, former Monetary Policy Committee member David Blanchflower wrote in the New Statesman.

“It’s never easy replacing a tyrant but there are huge benefits from doing so. The pain is usually worth it,” Blanchflower wrote.

“A tyrant looks to his own advantage rather than that of his subjects and uses extreme and cruel tactics - which pretty much sums up how I feel Mervyn King has run the Bank of England in his role as governor since 2003,'’ Blanchflower, now a professor of economics at Dartmouth College in New Hampshire.

He said his preference as a replacement would be a ‘‘heavyweight’’ banker, such as former HSBC Plc chairman Stephen Green, now a minister of state, or John Varley, former chief executive officer of Barclays Plc. Former cabinet secretary Gus O’Donnell should also be considered, he wrote.

To contact the editor responsible for this story: Chris Peterson at cpeterson@bloomberg.net

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