In fact, in their model, monetary tightening in response to a supply side shock may be self-defeating, unless it is accompanied by fiscal policies fostering the economy’s productive capacity. See Fornaro, L. and M. Wolf (2022), “The Scars of Supply Shocks”, Economics Working Papers 1748, Universitat Pompeu Fabra. 12.
The Bank’s monetary policy communication practices  I will begin by describing in three steps the Bank’s communication practices on monetary policy. First, I will explain the legal requirement with regard to communication. Second, I will focus on the current communication practices on monetary policy.