The Transmission mechanism of monetary policy（货币政策的传导机制）.pdf

The transmission mechanism of monetary policy The Monetary Policy Committee Bank of England This report has been prepared by Bank of England staff under the guidance of the Monetary Policy Committee in response to suggestions by the Treasury Committee of the House of Commons and the House of Lords Select Committee on the Monetary Policy Committee of the Bank of England. The Monetary Policy Committee: Eddie George, Governor Mervyn King, Deputy Governor responsible for monetary stability David Clementi, Deputy Governor responsible for financial stability Alan Budd Willem Buiter Charles Goodhart DeAnne Julius Ian Plenderleith John Vickers This report is also available on the Bank’s web site: www.bankofengland.co.uk The transmission mechanism of monetary policy Introduction and summary goods and services, and an indirect effect on the prices of those goods and services that compete with imports or use The Monetary Policy Committee (MPC) sets the short-term imported inputs, and hence on the component of overall interest rate at which the Bank of England deals with the inflation that is imported. money markets. Decisions about that official interest rate affect economic activity and inflation through several Part I of this paper describes in more detail these and other channels, which are known collectively as the ‘transmission links from official interest rate decisions to economic mechanism’ of monetary policy.