One Bank Research



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One Bank Research Agenda: Launch Conference Opening remarks given by Mark Carney, Governor of the Bank of England One Bank Research Agenda launch conference, Bank of England 25 February 2015 1 All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx I am delighted to open the Launch Conference for the Bank of England’s One Bank Research Agenda - an ambitious and wide-ranging framework to transform the way research is done at the Bank.. In the theoretical space, this process led to Woodford’s dictum that in modern central banking very little else matters beyond expectations.3 In contrast, the practice of central banking in a messy real world where people use various heuristics, including rational inattention, has shown the limitations of such logical extremes.. As Ben Bernanke observed “the trouble with QE is it works in practice, but it doesn’t work in theory.” Understanding better the transmission mechanisms of QE, and the extent to which they are state dependent, can provide enormous insights to its effectiveness as a policy tool specifically, as well as the formation of agents’ expectations and the functioning of financial markets more generally.. To complement this theme, we will release historical data sets including detailed breakdowns of the Bank s inflation expectations survey, our Agents company visit scores, and very long back-runs of key economic 6 All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx 6 and financial variables.. 7 All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx 7 Conclusion Economies are complex, dynamic and constantly evolving systems, underpinned by social interactions and behavioural change shaped by fundamental forces like technology and globalisation and supported – or at times disrupted – by finance..

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