Monetary Policy From End To End: Define, Decide, Deliver Speech given by Dave Ramsden, Deputy Governor for Markets and Banking  The Strand Group Lecture Series King’s College London 20 November 2017  I’d like to thank Grellan McGrath for his assistance in preparing this speech, and colleagues around the Bank for their useful comments 1  All speeches are available online at www.bankofengland.co.uk/speeches  End to End Monetary Policy  This is my first speech in my new role as Deputy Governor for Markets and Banking, and as a member of the Monetary Policy Committee (MPC). It is a pleasure to be giving it in the newest part of King’s College London th  and in my position as a visiting professor here at King’s. And I’m delighted it’s the 25 Strand Group event, showing how this flagship series of policy relevant events has already become well established. One of the key differences between my old and my new role is the level of accountability. As Chief Economic Advisor to HM Treasury for the past 10 years, as would be expected under the civil service code, I was generally responsible for giving evidence-based advice to ministers who were ultimately accountable for their decisions to parliament and the public. That is very different in my new role in which I am directly accountable to parliament and public for decisions taken as a member of the MPC, Financial Policy Committee (FPC) and Prudential Regulation Committee (PRC).
By de-politicising the short run trade-off between inflation and activity, this arrangement has provided the grounds for the most successful monetary policy regime for the UK thus far. The MPC’s flexible inflationtargeting framework was further strengthened by the 2013 Treasury Review and the following Remit update which effectively ‘completed the contract’ by further specifying the relationship between the MPC’s primary objective for price stability, and its secondary objective to support jobs and growth. Though, having overseen the 2013 Review, I must declare an interest in judging its contribution. Since then, the Remit has explicitly acknowledged that, in exceptional circumstances shocks to the economy may be particularly large or the effects of shocks may persist over an extended period. In such a period the  1  Carney M (2017), remarks given at a conference to mark 20 years of the MPC’s operational independence, notes that Governor Eddie George once remarked that in the half century that followed the Bank’s nationalisation in 1946 it “operated under legislation which, remarkably did not attempt to define our objectives or functions.” 3  All speeches are available online at www.bankofengland.co.uk/speeches  3  MPC must balance the trade-off between the speed with which inflation is brought back to the target and the consideration that should be placed on the variability of jobs and economic activity.