Where the words come from
The definitions of monetary and fiscal policy, loose and tight monetary policy and how interest rates change aggregate demand, and the case for an independent central bank — Principles of Economics 2e, OpenStax, licensed CC BY 4.0. https://openstax.org/books/principles-economics-2e/pages/28-4-monetary-policy-and-economic-outcomes and https://openstax.org/books/principles-economics-2e/pages/28-5-pitfalls-for-monetary-policy. Changes: every reference to the Federal Reserve and the federal funds rate removed; the loanable-funds figures dropped; the card definitions trimmed from 2e's "a monetary policy that lowers interest rates and stimulates borrowing is an expansionary monetary policy or loose monetary policy" and its contractionary counterpart, with the effects on investment and big-ticket consumption from the same section; the UK institutions, the examples and the who-acts test are ours; British spelling.
The Bank of England's objectives, the 2 per cent CPI target, the open-letter thresholds, the membership of the Monetary Policy Committee, and Bank Rate and asset purchases as its instruments, and forward guidance — Remit for the Monetary Policy Committee (HM Treasury, November 2025); the Bank of England Act 1998, sections 11 to 13; the September 2026 open letters between the Governor and the Chancellor; and HM Treasury's Review of the monetary policy framework (2013). Open Government Licence v3.0. https://www.gov.uk/government/publications/monetary-policy-remit-budget-2025/letter-from-chancellor-of-the-exchequer-to-govenor-of-the-bank-of-england and https://www.legislation.gov.uk/ukpga/1998/11/contents and https://www.gov.uk/government/publications/open-letters-between-hm-treasury-and-bank-of-england-september-2026 and https://www.gov.uk/government/publications/review-of-the-monetary-policy-framework. Changes: the remit's wording on objectives, the target and the open-letter thresholds condensed; the Committee's statutory membership counted and put into words; Bank Rate as the Committee's main instrument taken from the 2013 review ("main conventional policy instrument, the short-term nominal interest rate"; the MPC keeping "Bank Rate lower" and delivering stimulus through QE) and the Governor's September 2026 letter; the remit's "unconventional policy instruments" described as buying bonds with newly created money; the tools block recast around three tools: Bank Rate, asset purchases (quantitative easing) and forward guidance, the last from the remit's "deploy forward guidance in order to influence expectations"; how each tool works is explained in our own words; the new check is ours.
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