england operational control for setting monetary policy. the bank of england act of 1998 clarified – for the first time in three centuries – the bank ’ s responsibilities. it gave a new independent body of the bank, the mpc, a clear remit to achieve the inflation target over the medium term. the inflation target is symmetric ( meaning we care as much about returning inflation to target from below as from above ), and it applies at all times. subject to achieving the target, the mpc is also required to support the government ’ s economic policy objective, currently strong, sustainable and balanced growth. accountability under what mervyn king termed constrained discretion, the bank takes its orders from the remit and is accountable to parliament and the people for its performance. their expectations certainly have changed since montagu norman justified his decisions to a compliant predecessor of the tsc by appealing opaquely to his “ instincts. ” not a response i ’ ve dared to venture during my thirty odd parliamentary testimonies. more seriously, the need for the bank to be open and accountable is greater than ever, not only because of the growing distrust of institutions and the ‘ experts ’ who reside within them, but also because better public understanding makes our policies more effective. that ’ s why the bank has increased dramatically the scale and quality of its outreach. we now publish all relevant information for each policy decision on the day it is released. we disclose the key judgments underlying our forecasts and account for differences when they occur. leveraging our network of 12 regional agencies, we meet with thousands of businesses every year, discuss with the tens of thousands of people who attend our town halls and public forums, and engage with the hundreds of thousands more through social media. performance and lessons learned the gains from independence have been enormous. in the two decades that followed independence, inflation averaged just under 2 % compared with over 6 % in the preceding two. it ’ s been one - fifth as volatile. crucially, independence allowed monetary policy to respond boldly and effectively to the biggest financial crisis in a century. and it leaves the bank well placed to address a range of possible developments around brexit. as former governor eddie george once remarked, in the half century that followed its nationalisation in 1946 “ the bank operated under legislation which, remarkably, did not attempt to define our objectives or functions. ” they were, instead, “ assumed to carry over from [ the bank ’ s ] earlier long history. ” george, e ( 2000 ),

with reforms that would boost efficiency. the budget for 2008 already reflects changed priorities, with increased expenditure on defense and education. it is obvious that education is one of the most important subjects, for the future of the economy, the society, and the country. human capital is israel ’ s main natural resource. it is therefore vital to invest in education and promote the reform that will raise the level of youngsters ’ achievements, while remaining within the budget framework. maintaining the budget framework, and growth - inducing reforms such as the education reform constitute a very important contribution by the government to the achievement of the goal of tomorrow ’ s economic agenda – rapid and sustained growth which benefits the entire population. such growth is critical for the future of the economy, society, and the country.