The MPC Comes of Age - speech by Rachel Lomax

Speaking at De Montfort University tonight, Rachel Lomax, Deputy Governor for Monetary Policy, considers what has been special about the Monetary Policy Committee as it approaches its tenth birthday; and asks how age and success has changed it.
Published on 28 February 2007

The key characteristic of the current approach to monetary policy is encapsulated in the term 'constrained discretion', which she says is defined by Ben Bernanke as "an approach that allows monetary policy-makers considerable leeway in responding to economic shocks, financial disturbances, and other unforeseen developments. Importantly, however, this discretion of policy-makers is constrained by a strong commitment to keeping inflation low and stable."

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