This paper provides a brief survey of the role of financial frictions in the monetary transmission mechanism. After noting some of the key stylised facts that any model of the transmission mechanism must be consistent with, we discuss both the classical interest rate channel and the credit and...

In this speech, Charles Bean, Chief Economist and member of the Monetary Policy Committee, reviews the background to the adoption of an inflation target in 1992 and the subsequent development of the regime, in particular the delegation of operational responsibility for monetary policy to the...

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...

On 28-29 March 2003, the BIS held a conference on Monetary stability, financial stability and the business cycle. This event brought together central bankers, academics and market participants to exchange views on this issue (see the conference programme and list of participants in this...

In this speech, Charlie Bean, Executive Director, Chief Economist and member of the Monetary Policy Committee, discusses the impact of globalisation on the industrialised countries and in particular the inflation process. He explains how globalisation has affected the returns to labour and...

This article describes the internal processes adopted by the Monetary Policy Committee and the Bank for the formulation of monetary policy. It covers the regular monthly policy round as well as the quarterly forecast round and the preparation of the accompanying Inflation Report