Since
the Bank of England was made independent
in 1997, the conduct of monetary policy
has been relatively uncontroversial. The
debates between Keyneisans, monetarists
and supporters of fixed exchange rate mechanisms
now appear very distant.
Despite the apparent consensus there are
many issues related to the conduct of monetary
policy that are not yet settled and which
will soon come to the fore. Is the current
form of independence for the Bank of England
appropriate? Should a central bank target
inflation or the prices level? How does
a central bank deal with asset price deflation?
Should more account be taken of monetary
aggregates? Should central banks target
asset prices? What is the relationship between
the money supply and asset price inflation?
How should central banks ensure financial
stability?
The IEA was at the forefront of changing
the parameters of the debate surrounding
monetary policy in the 1970s and 1980s.
This text, brings together some of the leading
authors in the field, including the current
Governor of the Bank of England, to discuss
current issues in monetary policy and the
relationship between monetary policy and
financial markets. It is appropriate for
undergraduates and postgraduates in economics
and finance as well as for practitioners
in financial markets. |
