The English Chancellor of the Exchequer, Gordon Brown, appointed David Blanchflower, the Bruce V. Rauner Professor of Economics, to the Monetary Policy Comittee of the Bank of England during his annual budget speech to Parliament on March 22.
"This is a call to public service in the country where I was born that I simply could not ignore," Blanchflower said in a statement. "Setting interest rates is the ultimate job for any economist."
Blanchflower will split his time between Dartmouth and the Bank of England. His appointment takes effect in June.
The three main goals of the Bank of England are to set interest rates to keep the target inflation, issue bank notes and work toward a stable financial system, Sally Reid of the Bank of England Press Office said.
"What we are aiming to do is to keep monetary stability and financial stability," Reid said.
Blanchflower, who is involved in the monetary stability aspect of the committee, has the task along with the other eight members of the committee to set the right interest rates to keep inflation at the target said Reid.
Professor Jonathan Skinner, chair of the economics department, believes the appointment was well-deserved.
"The reason why he was appointed is, first he's British, and more importantly, he's been doing some interesting research between unemployment and inflation," Skinner said.
Similar to the Federal Reserve of the United States, this committee must deal with raising interest rates to inflate the value of their currency. hoping to stimulate the economy, while not to having an adverse affect on workers, Skinner said.
The committee meets once a month, and decisions are made by a majority rule. Each member of the committee has an equally-weighed vote.
Of the nine members of the Monetary Principle Committee, five are internal and come from within the bank, and four are external members who provide economic expertise.
The Bank Chancellor, comparable to the United States' Secretary of State, appoints the four external members to their first three-year term. A member may sit for an unlimited number of terms.
The committee does not have veto power but can state whether they are in favor of the appointment and their reasons in a parliamentary confirmation hearing, which is open to the public. There is not yet a set date for Blanchflower's hearing, Reid said.
The Bank of England has been operationally independent since June of 1997.
