Moretti (2004) does provide some evidence of sizable (and statistically significant) externalities at the US plant level. 2  BIS Review 52/2007  The quality of education Education, however, is only one component of the broader concept of human capital, which also involves on-the-job training and learning as well as cognitive skills.
That is particularly true at times of great uncertainty, as existed last autumn. But our clear inflation target means that, in principle, our discretion is limited relative to that of fiscal policy.