Mr King explores lessons from the UK labour market Text of the Employment Policy Institute’s Fourth Annual Lecture delivered by the Deputy Governor of the Bank of England, Mr Mervyn King, held in London on 1/12/98. It is both an honour and a challenge to deliver the fourth EPI lecture. It is an honour to follow in such distinguished footsteps, and it is a challenge to tackle the subject of the link between monetary policy and the labour market. Few subjects are as emotive. Wages, jobs and unemployment feature as frequently in the popular press as they do in academic articles. The Bank of England must learn from one in order to convey our message in the other. And we are fortunate in that labour economics is a field in which British economists have been – and continue to be – at the forefront of research. That I can say objectively because I am not myself a labour economist. So tonight I shall be exploring lessons from the labour market for the Monetary Policy Committee. The Employment Policy Institute has played an important role in bringing together those undertaking research on labour markets and those involved with policy decisions. In particular, its Employment Audit provides a valuable commentary on current developments. The labour market is unlike any other market. Indeed, for many people the very language of economists – equilibrium unemployment, market-clearing wages – seems incompatible with the human dimension of unemployment and deprivation.
For the day when this event will not only be our dream, but also our reality, the National Bank will continue to promote the fulfillment of its goals and tasks in accordance with European standards and best practices, which is of exceptional importance for the future the process of admission of the country into the membership of the European Union. Therefore, I assure you that we, the management and the employees of the National Bank, will be committed to this Project, we will openly and constructively cooperate during the implementation of all project activities, and use this opportunity provided by the European Union for further strengthening the capacity and credibility of our institution. At the end of my speech, let me wish the successful work of the project leaders and all the experts participating in the Project. I believe that after eight months we will be able to summarize a successfully completed Project, and in the period after that, after we have implemented the recommendations, we will write one of the many historical pages about the contribution of our institutions to the European integration processes of our country. Thank you! 2/2  BIS central bankers' speeches