The whole point of the Independent Bank of England was to try and provide done economic credibility to markets that Labour could be trusted with the economy and wouldn't over-borrow as they had done previously...
It failed for 2 reasons:
1) it clearly wasn't independent as the inflation target was frequently ignored for other (often political) reasons
2) the government decided to borrow by the back door (PFI) at inflated rates
In the absence of an alternative reality, we'll never really know what would have happened in the event of it staying under chancellor control. As I work on the belief that politicians should have as little power as possible, I'm still in favour of it.
The Euro is saved!European leaders agree the next Greek bailout:
BBC News - Eurozone ministers back 130bn-euro bailout for Greece
....until the next bailout.
Don't you mean throw money away into the bottomless pit
They'll default long before the next bailout
Throwing the Euro about like confetti at a Greek wedding surely devalues it?
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It's just more can kicking. Buying more time to shore up the rest of the system so it can better withstand the inevitable Greek default.
Not an insignificant number of economists have stated that it is inevitable that Greece will have to leave the Euro eventually, they are simply too far gone to recover especially when their austerity measures are facing massive public opposition.
Especially with so many of the banks facing a big haircut.
Poor things.