Andy Haldane, executive director for financial stability at the Bank, said economists had misled policymakers in the run up to the credit crunch by promoting a “blinkered view” of the world based on the premise their theories were always right.
The report added Haldane said the academic establishment, including central bankers, should own up to its mistakes.
Haldane said: “It’s right that it should shoulder some of the blame [for the financial crisis]. In part, this is because thinking within the wider academic economic community did start to shape and influence public policy in important ways.
“I think looking ahead, central banks – this isn’t remotely just about the Bank of England – are going to need … to say when they’ve got it wrong, to admit to mistakes when they’ve been made.”
He made the comments in an interview with democracy organisation OurKingdom, the UK arm of openDemocracy.
