The next Governor

When Sir Mervyn King steps down as Bank of England Governor next June, even his most loyal supporters will struggle to describe his tenure as a success. He failed to spot the massive asset bubble which burst so spectacularly. His job was to keep inflation down, and Britain has instead suffered the worst inflation in Europe. He has injected £375 billion of digitally created money into the economy, to no apparent benefit whatsoever. The Governor has many qualities: he is learned, amiable and resolute. But he has not proven to be much good at running a central bank.

The hunt for his successor will begin in the autumn, when the Chancellor will advertise for the job. It will be the most important vacancy in Britain. The job may be tough, but it comes with several perks. There are men in pink tailcoats and top hats to bring you coffee, bright staff, a cunningly inflation-proofed pension, a salary of around £400,000 a year, with the possibility of lots more once you retire.