The MPC’s forward guidance builds on the clarity and credibility of the inflation target to address some of the exceptional challenges currently facing our economy. And in so doing it should help to increase the effectiveness of monetary policy. BIS central bankers’ speeches  7  References Bean, C (2011) “The Economic Outlook”, speech to the Northern Ireland Chamber of Commerce. http://www.bankofengland.co.uk/publications/Documents/speeches/2011/speech497.pdf Broadbent, B (2011) “Rebalancing and the real exchange rate”, Speech at Thompson Reuters,London. http://www.bankofengland.co.uk/publications/Pages/speeches/2011/520.aspx Broadbent, B (2012) “Productivity and the allocation of resources”, speech at the Durham Business Schoolhttp://www.bankofengland.co.uk/publications/Pages/speeches/2012/599.aspx Broadbent, B (2013) “Conditional guidance as a response to supply uncertainty”, speech at the London Business School. http://www.bankofengland.co.uk/publications/Pages/speeches/2013/678.aspx Fisher, P (2013) “The Outlook for the UK economy”, speech to the Cardiff Breakfast Club. http://www.bankofengland.co.uk/publications/Documents/speeches/2013/speech659.pdf Maule, B and Pugh, A (2013) “Do inflation expectations currently pose a risk to the economy?”, Bank of England Quarterly Bulletin, 2013 Q2. McCafferty, I (2013) “Monetary Policy in a Changing Economy”, speech at Bloomberg, London http://www.bankofengland.co.uk/publications/Pages/speeches/2013/627.aspx Miles, D (2012) “Monetary policy and the damaged economy”, speech at the Society of Business Economists Annual Conference. http://www.bankofengland.co.uk/publications/Pages/speeches/2012/576.aspx Miles, D (2013) “Monetary policy and forward guidance in the UK”, speech at Northumbria University. http://www.bankofengland.co.uk/publications/Pages/speeches/2013/681.aspx Taylor, J (2013) “Forward guidance as an incipient policy rule at the BoE and ECB”, http://economicsone.com/2013/08/25/forward-guidance-as-an-incipient-policy-rule-at-theboe-and-ecb/ Tucker, P (2013) “Monetary strategy and prospects”, speech at the Association for Financial Markets in Europe flagship conference on Financing Growth, London.
http://www.bankofengland.co.uk/publications/Pages/speeches/2013/679.aspx  8  BIS central bankers’ speeches  Annex: Charts Chart 1: UK CPI inflation  Chart 2: Recoveries across the G7 Per cent  Index (pre-crisis preak =100)  108  6  106  5  104  4  102 100  3  98 Germany France Italy UK US Japan  2 1 0 2005 2006 2007 2008 2009 2010 2011 2012 2013  96 94 92 90  2007  2008  2009  2010  2011  2012  2013  Sources: Eurostat and Datastream The pre-crisis peak was: 2008 Q1 for Germany, France, Japan and the UK; 2007 Q3 for Italy; 2007 Q4 in the US; and 2008 Q3 for Canada. Chart 3: UK labour productivity Percentage change on five years earlier  25 20 15 10 5 0 1861  1886  1911  1936  1961  1986  2011  -5 -10 -15 -20  BIS central bankers’ speeches  9