BIS Review 35/2008  3  Central banks would be well advised not to regard the observed flattening of the Phillips curve as a structural feature of the economy that is unrelated to monetary policy.
I am here today to deliver my first speech since being appointed as the Governor of the Bank, not because this is the case, but because I hope your forthright questions will provide me with food for thought and also because this is a good opportunity to explain the Bank's thinking behind the conduct of monetary policy.