Normal monetary policy

Most economists expect Bank Rate to stay at 0.5 per cent until at least 2014 and that there will be more quantitative easing soon. It seems, therefore, that monetary policy will stay exceptionally loose. But, in one sense, there's nothing exceptional about this at all. The Bank of England is setting monetary policy in much the same way it always has. What's extraordinary is not monetary policy, but the depressed state of the economy.

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