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Wed 25 March 2009, The Independent

Jeremy Warner: Governor tells Brown he cannot afford to spend any more

By Jeremy Warner
Mervyn King, Governor of the Bank of England, has broken one of the big unwritten taboos in publicly warning the Government off any further fiscal stimulus. The deal is that just as the Government stays out of the conduct of monetary policy, the Bank of England minds its own business on fiscal matters, at least publicly. There is always the odd bit of sniping on each other's territories, made the more intense by the financial and economic crisis of the past two years, but nothing as overt as yesterday's warning has happened in ages.
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