In this episode of Equitile Conversations, host Gerald Ashley and George Cooper discuss central banking with macroeconomist Damien Pudner of the newly formed Great British Think Tank. The think tank aims to provide clear, independent, data-driven analysis of government spending and economic statistics drawn from official sources like the ONS and OBR, free from political spin.

The conversation centres on the Bank of England’s operational independence. While Damian supports keeping interest-rate decisions out of politicians’ hands, he argues that independence without meaningful accountability is flawed. He highlights the Bank’s major errors in 2021–22: failing to monitor the money supply, continuing large-scale QE after the initial liquidity crisis had passed, and combining this with massive fiscal transfers. The result was an avoidable inflation surge as money growth outstripped economic output.

Both George and Damian note that quantitative easing has effectively politicised central banks by creating huge fiscal benefits for governments. This has led to “fiscal dominance,” where monetary policy is increasingly constrained by unsustainable public spending. They observe a broader trend toward greater state intervention and nationalisation in both the UK and US, which they see as moving in the opposite direction to the free-market reforms needed to revive private-sector growth.

On the outlook, Damian describes the UK as already in “managed decline,” with debt interest costs exceeding £110 billion annually and nearly £3 trillion in total debt. He believes a genuine crisis is likely within 2–3 years unless radical spending cuts and policy shifts occur. While some market discipline is emerging (central banks increasing gold reserves and paying more attention to money supply), there is broad agreement that there is no painless glide path out of current imbalances.

The discussion concludes with book recommendations on risk, central banking, and demographic pressures on fiscal policy.

About Damian Pudner

Damian Pudner is an independent economist, columnist and commentator specialising in monetary policy, macroeconomics and financial markets. A former City professional with more than 25 years’ experience across investment banking and hedge funds, he is a leading advocate of monetarism and nominal GDP targeting. He has written for publications including The Critic, CapX, City A.M., The Telegraph, The Spectator and the Institute of Economic Affairs, where he authored a discussion paper on reforming Britain’s monetary framework. He is also a Senior Research Fellow at the Great British Think Tank, a data-driven organisation focused on government spending, waste and improving the quality of public policy debate in Britain.

Great British Think Tank

This Episode's Book Recommendations

Gerald

Against the Gods – The Remarkable Story of Risk

George

The Unanchored Central Banker – Demography, Fiscal Instability, and an Erosion of the Central Bank's Inflation-Fighting Ability

Damian

You Always Hurt the One You Love: Central Banks and the Murder of Capitalism