The aim of this paper is to deal with the empirical aspects of the ‘new’ monetary policy framework, known as Inflation Targeting. Applying Intervention Analysis to multivariate Structural Time Series models, new empirical evidence is produced in the case of a number of OECD...

The authors argue that the institutional dimension of the Bank of England monetary policy and the role the UK HM Treasury assumes in this framework are both firmly based on the New Consensus in Macroeconomics (NCM). This is also the theoretical framework upon which the inflation targeting...