By the Select Committee appointed to consider the operation of the Monetary Policy Committee of the Bank of England and to make recommendations.

ORDERED TO REPORT

1.  The Committee invites evidence relevant to its terms of reference from any individual or organisation.

2.  The Committee draws the attention of potential witnesses to the following issues in particular:

• the objectives of monetary policy;
• the techniques of monetary policy;
• how changes in the short-term rate of interest work through to the economy:

(i)  as a whole, and

(ii)  in its different sectors;

• the relationship between monetary and fiscal policy;
• how the Chancellor of the Exchequer's objectives for the real economy come into play;
• how the emergence of European Monetary Union is expected to affect monetary policy in the United Kingdom;
• the information available to the Monetary Policy Committee and how that might develop in the future;
• the quality of the information upon which the Monetary Policy Committee makes its decisions, and in particular whether inflation is measured satisfactorily;
• how the Monetary Policy Committee is appointed;
• the frequency of the meetings of the Monetary Policy Committee and the effects of its minutes;
• the experience of other countries, in particular Western Europe and North America.

3.  Evidence should in the first instance be in writing and should be sent to the Clerk of the Committee:

    David J Batt
    Committee Office
    House of Lords
    London SW1A 0PW

    The Committee welcomes evidence submitted on disc (Word documents) or by e-mail to the following address: mcmurdoh@parliament.uk.

    Those submitting written evidence may subsequently be invited to supplement it orally.

4.  The Committee requests that, where possible, evidence should be submitted by Monday, 15 February 1999.