Charlie Bean, the deputy governor of monetary policy at the Bank of England, on Tuesday said there were deficiencies in economists' analytical frameworks for monetary policy.

At the Sir Leslie Melville Lecture, delivered at Australian National University, Canberra, Bean said the canonical macroeconomic model for thinking about the design of monetary policy used the New Keynesian synthesis, which focuses on the consequences of real and nominal rigidities in goods and labour markets that give rise