Does Public Disagreementon Monetary Policy Unsettle the Markets?

May 1, 1997

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Publication of minutes of monthly monetary policy meetings between the Chancellor of the Exchequer and the Governor of the Bank of England was a conspicuous feature of the United Kingdom’s inflation targeting framework from 1994 through April 1997. It was intended to reinforce credibility by publicizing the criteria on which policy was decided. On some occasions, however, these minutes revealed disagreement between the participants. This paper examines whether such disagreement unsettled the markets and detracted from credibility.

Subject: Exchange rates, Foreign exchange, Inflation, Inflation targeting, Monetary policy, Prices

Keywords: Disagreementon monetary policy, Exchange rates, Inflation, inflation targeting, inflation targeting framework, interest rate, interest rate differential, market, market participant, monetary policy credibility, sterling, transparency, WP

Pages:
11
Volume:
1997
DOI:
https://doi.org/10.5089/9781451848380.001
Issue:
063
Series:
Working Paper No. 1997/063
Stock No:
WPIEA0631997
ISBN:
9781451848380
ISSN:
1018-5941

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