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Lipsey & Chrystal: Economics 11e

Chapter 21

Page 481-5 cover the implementation of monetary policy. (This also has links to Chapter 24). One feature of the UK system is that the Governor of the Bank of England has to write an open letter to the Chancellor of the Exchequer in the event that inflation exceeds its target. This has only happened once to date and this is reported in the articles below.
Financial Times, Wednesday, April 18, 2007
search.ft.com/ftArticle?queryText=Inflation+rise+puts+pressure+on+Bank&y=3&aje=true&x=4&id=070417011465

Stories about monetary policy appear at regular intervals as monetary policy can be changed most easily, and policy makers meet once a month in UK and the eurozone and every six weeks in the US.  Policy changes are, however, less frequent.  When there is a change in the policy interest rate, it tends to make news.

For the US see:
Financial Times, 23 January 2008
www.ft.com/cms/s/0/aaaac462-c954-11dc-9807-000077b07658.html
Financial Times, 24 January 2008
www.ft.com/cms/s/0/b3f78dce-ca1d-11dc-b5dc-000077b07658.html

For the eurozone see:
Financial Times, 11 January 2008
search.ft.com/ftArticle?queryText=Tough-talking+ECB+holds+rates+as+German+pay+negotiations+begin&y=8&aje=true&x=20&id=080111000101&ct=0
Financial Times, 4 December 2007
search.ft.com/ftArticle?queryText=Trichet+need+to+perform+a+balancing+act&y=8&aje=false&x=17&id=071204000238&ct=0

For the UK see:
The Times, 3 February 2008
business.timesonline.co.uk/tol/business/columnists/article3277234.ece
Financial Times, 23 January 2008
www.ft.com/cms/s/0/d17d5c34-c955-11dc-9807-000077b07658.html

For latest policy announcements and analysis see:
www.bankofengland.co.uk/index.htm
www.federalreserve.gov/
www.ecb.int/home/html/index.en.html

In the autumn of 2008 the UK monetary authorities were having to deal with the combined effects of higher food and energy prices and the slowdown in activity associated with the credit crunch.
Analysis of inflation (which also links with Chapter 24) is provided in:
The Guardian, Wednesday, August 13, 2008
www.guardian.co.uk/business/2008/aug/13/inflation.creditcrunch1
The Guardian, Wednesday, August 13, 2008
www.ft.com/cms/s/0/33b0eafc-68ce-11dd-a4e5-0000779fd18c.html
The Times, Wednesday, August 13, 2008
http://business.timesonline.co.uk/tol/business/economics/article4518308.ece

Financial Times, Thursday, August 14, 2008 (case study on Japan on page 487)
www.ft.com/cms/s/0/c849792e-69a3-11dd-91bd-0000779fd18c.html