The Governor discusses the problems posed for the conduct of monetary policy this year by the strength of the dollar and the wayward behaviour of the monetary aggregates, and sets out the reasons why the authorities have felt justified in overriding the present £M3 target and placing more emphasis on other indicators, particularly the exchange rate.
He goes on to comment on change in the City and the role - and limitations - of strengthened regulation and supervision; and notes, too, that the demand for additional physical facilities is likely to require some geographical spread of the City beyond the confines of the 'square mile'
Problems of monetary policy and change in the City