Letter: Banking on independence

Mr Norman Webb
Wednesday 28 October 1992 00:02 GMT
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Sir: David Lewis in his letter regarding the Bank of England being independent (23 October) is in danger of rewriting modern history. The Bundesbank wished for a gradual integration of the two German economies; the politicians foolishly went for immediate integration. The Bundesbank, in raising interest rates, was doing so as the result of a political decision. It was simply acting as Helmut Kohl's agent and witnessing a state of affairs it had cautioned against. Rather than being an argument against the independence of a central bank, it confirms the need for it.

Yours faithfully,

N. WEBB

Hipperholme, West Yorkshire

23 October

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