Ward: Bank of England 'must raise rates'

The economist says Britain's inflation has taken off and this failure to address the problem could be dangerous, City A.M. reports. Ward believes the root cause of the rising inflation has been the development of an excess supply of money relative to the economy's demand to hold liquidity. "Most economists with monetarist leanings have dismissed the possibility of such an imbalance because of the slow pace of broad money supply expansion in 2008-09," Ward says. "The surplus, however, is the result not of an excessive rise in supply but rather a fall in demand: negative inflation-ad...