The Bank of England (BoE) needs to increase its intellectual diversity in order to combat groupthink, a House of Lords committee heard.
Martin Wolf, chief economics commentator at the Financial Times, said members of the bank’s Monetary Policy Committee (MPC) appeared to have voted “all in lockstep for a very long time.”
But the risk of groupthink is not unique in the UK’s central bank, peers on the Economic Affairs Committee were told. Academics, as well as the U.S. central bankers, have also been susceptible, according to Wolf and Donald Kohn, former vice chair of the U.S. Federal Reserve and former Financial Policy Committee member at the BoE….