I want to review these claims by examining the cold, hard facts around:   the foundational contributions that monetary policy makes to the good of the people of the UK;    how effective monetary policy has been in achieving macroeconomic outcomes since the crisis; and 10  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  10    what have been the associated developments in the distribution of income and wealth - the financial outcomes - since extraordinary monetary policies were first implemented. Reinforcing the foundations Any assessment of the distributional consequences of monetary policy must recognise that the negative effects of unemployment and volatile inflation fall predominantly on the poorest in society. High inflation hurts those, typically the less well off, who don’t hold equities or property or whose incomes are xxiii  fixed in nominal terms. Equally, if inflation is too low in a highly indebted economy, dynamics can quickly develop that raise real interest rates, increase debt burdens, lower wages, and reduce growth. In extreme, these can morph into debt deflation, causing very high and persistent unemployment. Again, the highly indebted tend to be less well off, and to pay the heaviest price. The happy medium is a monetary policy framework with a credible commitment to low, stable, predictable inflation over the medium term, as in the UK’s tried and tested arrangements. These give monetary policy the space to respond to shocks, while avoiding the distortionary effects of volatile inflation.

Because technology and trade are constantly evolving and can lead to rapid shifts in production, the commitment to reskilling all workers must be continual. In a job market subject to frequent, radical changes, people’s prospects depend on direct and creative engagement with global markets. Lifelong learning, ever-greening skills and cooperative training will become more important than ever. Finally, in an age where anyone can produce anything anywhere through 3-D printing, where anyone can broadcast their performance globally or sell to China whatever the size of their business, there is an opportunity for mass employment through mass creativity. Technology platforms such as taskrabbit, Alibaba, etsy, and Sama can help give smaller-scale producers and service providers a direct stake in global markets. Smaller scale firms can by-pass big corporates and engage in a form of artisanal globalisation; a revolution that could bring cottage industry full circle. Indeed, why doesn’t the G20 pursue global free trade for Small and Medium Size Enterprises (SMEs)? xxx  Global free trade for SMEs, connected via such platforms, holds out the prospect of a more inclusive form of global commerce with the individual at its centre. VII. Conclusion: The Current Monetary Policy Outlook Allow me to conclude by touching on the current outlook for monetary policy. The MPC indicated in the spring that the impact of a vote to leave the EU on inflation would be the product of its impact on demand, supply and the exchange rate. And it stressed then that the implications for monetary policy would not be automatic.