Wetherly and Otter: The Business Environment
Chapter 06
The policy of central bank independence has become an important factor in contemporary macroeconomics. Following its 1997 election in Britain, the New Labour administration acted swiftly to free the Bank of England from political influence by granting the bank control of interest rates. What brought about this new trend in monetary policy, why was central bank independence so important to the New Labour administration, and how has Britain’s economy faired in the past ten years as a result of central bank? Furthermore, what are the future threats to economic stability in the UK?
See:
http://www.voxeu.com/index.php?q=node/575
http://news.bbc.co.uk/onthisday/hi/dates/stories/may/6/newsid_3806000/3806313.stm
http://news.independent.co.uk/uk/politics/article2381083.ece
http://www.bloomberg.com/apps/news?pid=20601085&sid=a4VHIFLTaJyw&refer=europe
http://www.businessweek.com/magazine/content/04_28/b3891020.htm


