United Kingdom Monetary Policy: The Challenge for the 1990's - Tapa dura

The book examines the key issues faced by UK monetary policy makers in the 1990's. The most important issue will be the progress towards European Economic and Monetary Union (EMU). If full EMU were to be achieved then there would be no role for an independent UK monetary policy - monetary policy would be handed over to the Bundesbank. Although EMU is not an immediate prospect, UK membership of the exchange rate mechanism forms an important part of the move towards monetary integration in Europe. The impact of this on UK policy discussed in detail. The behaviour of the UK money supply will still be important in the 1990s and a significant part of the book is devoted to the analysis of narrow and broad money. A pragmatic approach to aggregating all the information on monetary conditions is also launched. The way in which the Bank of England operates in the money market is considered in detail.