Professor David Miles (Monetary Policy Committee, Bank of England)
Issues in macro-prudential policy design
The enormous problems in financial markets of the past two years have led to increasing doubts over whether monetary policy should be conducted solely so as to hit a target for consumer price inflation. In this presentation I will consider the case for central banks having a wider set of targets than inflation that include a responsibility for helping maintain financial stability. The case for this widening in responsibilities depends upon whether there are extra, effective policy tools. But what are those tools and does their use pose difficulties for the operation of conventional monetary policy instruments?
