The Bank has just released its Statement on Monetary Policy, and there is no end of discussion at this time of year in various conferences about what may lie ahead. Instead, I want to make some observations about several issues which have been important in the conduct of policy over the past couple of years.
These issues of principle are worth clarifying as they are likely to be of more enduring importance than comments about the current state of the economy. Background The past two or three years have seen some highly unusual circumstances for the conduct of monetary policy.