Re: RoI
"those in the know credit him and Alistair Darling for an amazing response to the Global Financial Crisis."
Responding is one thing. Having been a component is another.
Consider this:
Policy: tie interest rates to a measure of inflation.
Make the measure one which excludes the cost of housing.
Outsourcing of manufacturing to China lowers inflation.
Low interest rates lead to lots of cheap loans.
Cheap loans raise demand in housing market.
House building doesn't keep up so prices rise.
People living in houses whose value has gone up take out more cheap loads are taken out against the increased value just because they can.
Politicians: "Nothing to do with us, banks set interest rates & make loans. Never mind the interest rates, just look at the low inflation (excluding house prices)."
Meanwhile outsourcing leads to people losing their jobs.
People who lose their jobs can't service the loans they took out irrespective of how cheap they were.
?
Even as a non-economist bystander I could see this wasn't going to end well. How on Earth could anyone who adopted this policy in the first place be reckoned as anything short of a disaster. Admittedly he wasn't the only one who did so but he was one who did so and in an influential economy.
And look at the collateral damage: interest rates influence the value of pension funds. Pension schemes developed black holes, The black holes affected the share values of the companies that ended up diverting revenue to plugging them. Share values affect the valuations of pension funds invested in them so everyone's repairs widened everyone else's black hole. Just to make things worse the feedback loop had been given an additional kick downhill by removing pension funds' tax allowance on dividends. Final salary schemes became history. Pension funds are still trying to plug their black holes.
But he could bask in the reputation of presiding over a period of low inflation.