18.05.2012
By Simon Miller
Adam Posen is leaving the Bank of England Monetary Policy Committee (MPC) it was announced this afternoon.
Posen is to leave the MPC on 31 August to become president of Washington-based Peterson Institute for International Economics.
Seen as a dove in the MPC, he surprised the market by votign for keeping the BoE's quantitative easing at £325bn last month.
However, soeaking to MNI Newswire this morning Posen said he may have underestinmate the UK's economic growth, suggesting that he should have voted for further liquidity in the system.
"I had been hopeful in the last few months that after we did an additional £125bn that was getting close to enough. And now I am debating whether I was premature to think that," he told the newswire.
BoE governor Mervyn King commented: "I congratulate Adam on his appointment to lead the highly respected and admired Peterson Institute. On behalf of the Bank, I want to thank Adam for his outstanding contribution to the MPC over the past three years and wish him well in his new role.”
Adam Posen said: “I am deeply grateful to the superb staff of the Bank of England, to the governor and all of my colleagues on the MPC, and to Her Majesty's Treasury for enabling me to make a contribution to British monetary policy during this difficult and challenging period.
"I am proud of the work we have done trying to understand and stabilize UK economic performance in the aftermath of the global crisis. I also am sincerely grateful to the many people from all areas of the United Kingdom who engaged with me openly and frankly during my travels for the MPC."
Meanwhile, the Chancellor George Osborne wished his own congratulations and added: "I am sorry that he will be leaving the MPC but understand his reasons for doing so. Adam has made a significant contribution to monetary policy making and analysis during his three years on the Committee."
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