Rus News Journal

English pound King

new appointments

the Minister of Finance of Great Britain Gordon Brown in parliament will correct Yesterday has opened a bank secret: its assistant Mervin King becomes the new head of Bank of England instead of leaving this summer in Edward George`s resignation. Mister King is known for that has returned to English pound reputation of hard currency - and to these can be interesting to Russian.
Certainly, the head of Bank of England not so is known world, including Russian, to public opinion as the head of Federal reserve system (FRS) the USA. Eventually, world currency is now not the English pound, and the American dollar, and Russian it very well know. But head FRS Alan Grinspen perfectly knows that as world currency the dollar has come after the Second World War in the stead of English pound, and repeatedly this circumstance underlined. And for fruitful cooperation with Bank of England mister Grinspen has been devoted not so long ago in the British knights.
it is necessary to notice that the Bank of England last years has not less merits, than FRS. Eventually, the main advantage of any central bank is that the banknotes let out by it not too depreciate. Under the direction of Alan Grinspena the American dollars show very good results. This year, for example, inflation in the USA hardly will make more than 1,5 %. Under the direction of the present head of Bank of England Edward George English pounds also have extremely improved the results. In 1990 - 1991 they annually depreciated more than on 10 %. In 1992 the British Ministry of Finance has set for bank a problem by 1997 to provide no more than 2,5 % annual inflations. And it has really been made. In 1997 the government even has allowed to establish henceforth to Bank of England interest rates under its discretion. And now inflation in Great Britain on - former does not exceed 2,5 %. We will not say that the English pound, unlike DM or the French franc, has simply kept the existence, and it too it is similar to dollar.
the assistant to mister George 54 - the summer former professor of economy Mervin King is known not only that supports soccer team Aston Villa and reaches for work by the underground, but to that answers in Bank of England just for the interest rate and inflation and is the most influential committee-man on the monetary policy of bank. Mister King repeatedly underlined that wants to make so that all considered the percentage policy boring . He specified also that its successes in struggle against inflation grow out of favorable coincidence of circumstances. It is difficult to argue. Business is valid in favorable coincidence of circumstances: British and all other world have simply decided that the Bank of England can on - former be trusted and it is not going to do any nonsenses. From what then to pound to depreciate?
Mervina King often consider as the opponent of joining of Great Britain to an eurozone and replacements of pound by euro. It denies it, noticing that is not neither the opponent, nor the supporter and that in general is a question political, instead of economic. However anyway he hardly will be delighted, if the English pound strengthened by it is withdrawn from circulation and the Bank of England will leave century traditions of independence. The population of the majority of the countries of the world including Russia, with it in this case obviously sympathises: English pound as any hard currency, uses the big sympathy.