Over the last thirty years or so the developments in the area of monetary and macroeconomic policies have been quite substantial. Within the new consensus macroeconomics (NCM), monetary policy is upgraded while fiscal policy is downgraded. This new monetary policy has been the main instrument of...

This is the first in a new series of annual reports, designed to throw light on the operation of the Bank's published framework for implementing monetary policy and providing liquidity to the banking system, known as the Sterling Monetary Framework (SMF). As recommended by Bill Winters' review...