The Governor identifies a broad consensus on the need for monetary policy to be directed towards stability and sustainability in the medium and longer term, and a growing recognition of the importance of supply-side flexibility. The Governor compares the new UK monetary policy arrangements with those planned for Europe, and concludes that the essential similarities are much greater than the differences. He warns, however, of the potential risk to monetary union posed by very high and differing rates of unemployment in the European Union.
Monetary policy in Britain and Europe