I’d like to talk to you this evening about the Bank of England’s relationship with financial markets. In particular: how we use our balance sheet and how we gather market intelligence. I appreciate my saying that may immediately make you regret giving up your Thursday evening to hear a central banker speak! But let me make the case that the central bank’s balance sheet and the way we understand financial markets is at the very heart of modern policy making. And let me also argue that the journey from “constructive ambiguity” toward greater clarity around how we interact with markets is essential for the effectiveness ... (full story)