The Interaction of the FPC and the MPC

13 Pages Posted: 17 Dec 2014

See all articles by Tamarah Shakir

Tamarah Shakir

Bank of England - Monetary Analysis

Matthew Tong

Bank of England

Date Written: December 8, 2014

Abstract

The Bank’s Financial Policy Committee (FPC) and Monetary Policy Committee (MPC) are separate committees, each with their own primary objectives, but with a common secondary objective. In addition, the policy actions of one committee can affect economic and financial variables of interest — and hence the policy stance — of the other. There are clear benefits from having two separate committees. But there is also considerable scope for, and benefits from, effective information sharing and dialogue between the FPC and MPC, and a shared understanding of each committee’s approach to policymaking.

Suggested Citation

Shakir, Tamarah and Tong, Matthew, The Interaction of the FPC and the MPC (December 8, 2014). Bank of England Quarterly Bulletin 2014 Q4, Available at SSRN: https://ssrn.com/abstract=2539488

Tamarah Shakir (Contact Author)

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Matthew Tong

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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