By Edward George, the Governor of Bank of England.
The Governor of the Bank, Eddie George, argues that there is a broad international consensus on the key elements of economic policy—not just in the industrialised countries, but in many of the developing, emerging and transitional economies too. On monetary policy, the consensus emphasises the importance of effective price stability and eliminating inflation as a factor in economic decisions, while on fiscal policy it is best described as fiscal prudence and sustainability which does not place an excessive burden on monetary policy to maintain macroeconomic stability. The Governor notes that macroeconomic policy does not operate in a vacuum. Structural policies, which emphasise that competition increases aggregate activity, act as a stimulus to economic growth and employment.