Monetary Transmission Lags and the Formulation of the Policy Decision on Interest Rates

Goodhart, Charles A. E.
July 2001
Review (00149187);Jul/Aug2001, Vol. 83 Issue 4, p165
Trade Publication
Discusses the issues regarding the implementation of the policy by the Bank of England Monetary Policy Committee (MPC) in Great Britain. Determination of whether the two-year policy horizon set by the MPC is optimal for their inflation targeting approach; Appropriateness of the MPC practice to condition its inflation forecast; Extent to which policymakers should respond to asymmetric risks in inflation forecasts.


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