An interesting issue to examine, as monetary policy faces a new and changing environment, is the use of financial market indicators by monetary policy authorities. With this in mind, the OECD asked a number of major central banks whether, in their view, financial market indicators are useful in...

Monetary policy affects activity, and ultimately inflation, in a number of ways. The most important of these is generally considered to be through the effect of interest rates directly on the demand for goods by households and firms. However, monetary policy can also influence activity through...

In a new and changing environment for monetary policy, an interesting issue to examine is the use of financial market indicators by monetary policy authorities. With this in mind, the OECD canvassed a number of major central banks to get their views. This paper presents a synthesis of the...