Governor predicts 'opportunities'
Blanchflower says King ‘lacks credibility’ over Brexit
Lord King (pictured) said there were “real opportunities” for economic reform and new trade deals which meant Brexit could be a success.
He pointed to agricultural reform and a relationship with the Republic of Ireland as areas where the UK could be positive.
“I think the challenges we face mean it’s not a bed of roses, no one should pretend that, but equally it is not the end of the world and there are some real opportunities that arise from the fact of Brexit we might take,” he said in an interview with Radio 4’s Today programme.
“There are many opportunities and I think we should look at it in a much more self-confident way than either side is approaching it at present.
“Being out of what is a pretty unsuccessful European Union – particularly in the economic sense – gives us opportunities as well as obviously great political difficulties.”
But Danny Blanchflower, who was a member of the MPC under Sir Mervyn, said the former governor was “not credible as he missed the collapse of Northern Rock, the 2008-12 recession, the failure of RBS and gave a wrong interpretation on the impact of austerity.
“Every economist now thinks the economy is going to slow pretty fast,” said Blanchflower, speaking on LBC radio.
“The problem is we are going to be outside this free trade area with no idea who we are going to trade with.”
He said Sir Mervyn did not act when he should have done so, “which is why he has no credibility whatsoever talking about what’s coming.
“This is a political intervention and everybody should just ignore what he says.”