Written question asked by Lord Roberts of Conwy (Conservative), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Tuesday, 13 November 2012.

International Monetary Fund

Question: To ask Her Majesty’s Government what assessment they have made of the reactions of other Governments and the European Commission to the International Monetary Fund working paper The Chicago Plan Revisited.[HL2921]

Answer

The Government’s macroeconomic framework includes the Bank of England’s Monetary Policy Committee (MPC), which has responsibility for monetary policy operations. The MPC’s objective is to maintain price stability through an inflation target defined as a 2% annual increase in the consumer prices index. The MPC’s tools include bank rate, or the short-term nominal interest rate, and quantitative easing.

The Independent Banking Commission has stated that:

“A complete move from fractional to full reserve banking would dramatically curtail the lending capacity of the UK banking system, reducing the amount of credit to households and businesses and destroying intermediation synergies”.

Secondary information

Type: Written question
Reference: 740 c281WA; HL2921
Session: 2012-13
Subjects: Monetary policy
Link: View this Written question on www.publications.parliament.uk

International Monetary Fund

Secondary information

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