Monetary Policy in an Uncertain World

12 Pages Posted: 7 Apr 2005

See all articles by Charles Richard Bean

Charles Richard Bean

London School of Economics & Political Science (LSE) - Department of Economics; Bank of England

Abstract

In this speech, Charles Bean, Chief Economist and member of the Monetary Policy Committee, reviews and assesses the three types of uncertainty which affect monetary policy makers: uncertainty about the data; uncertainty about the nature and persistence of shocks; and uncertainty about the structure of the economy. Focusing on uncertainty about the structure of the economy, he notes the unusual stability of inflation and output growth in the past decade or so. There are a number of possible explanations, including plain good luck, structural changes in the economy and improved policymaking. Mr Bean goes on to note that the short-run trade-off between inflation and activity seems to have flattened as inflation has stabilised at low levels and he attributes this in part to improved monetary policy making. He goes of this change.

Suggested Citation

Bean, Charles Richard and Bean, Charles Richard, Monetary Policy in an Uncertain World. Bank of England Quarterly Bulletin, Spring 2005, Available at SSRN: https://ssrn.com/abstract=698821

Charles Richard Bean (Contact Author)

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