Bringing Together Information on Monetary Conditions

Abstract

The assessment of the tightness or laxity of UK monetary policy by the authorities takes into account a range of factors. Different emphasis has been placed on each of the factors at different points in time but the range of indicators which is examined has not changed since the early 1980s. The most important indicators in the early 1990s are the behaviour of the exchange rate and the narrow measure of the money supply, M0. Other information includes: the behaviour of broad money; the level of real interest rates; and the behaviour of asset prices.