By Garry Young of the Bank's Monetary Assessment and Strategy Division.
In September 2007, the Bank of England hosted an international conference on the sources of macroeconomic stability. This article summarises some of the ideas and debates that were raised at the conference. It focuses particularly on the role of monetary policy in fostering macroeconomic stability and draws out some of the implications for policy and research. These issues are relevant to the current economic situation. The UK economy is likely to be better able to withstand the turbulence it is currently experiencing if the previous prolonged period of stability was caused by sustainable structural change and an improved policy framework.