Contributor(s): Professor David Miles | The banking sector across many developed economies proved fragile – insufficiently robust to prevent worries about the value of bank assets generating a banking crisis. This caused a downturn which in the UK has been severe and prolonged. But this has happened while inflation has stayed relatively high. This creates huge challenges in setting monetary policy. David Miles will analyse those difficulties and consider how banks can be best made more robust. Professor David Miles joined the Monetary Policy Committee at the Bank of England in June 2009. He is also a Visiting Professor at Imperial College. Miles was formerly a professor of financial economics and head of the Finance Department at Imperial. As an economist he has focused on the interaction between financial markets and the wider economy. He was Chief UK Economist at Morgan Stanley from October 2004 to May 2009. He has been a specialist economic advisor to the Treasury Select Committee. In Budget 2003, the Chancellor commissioned Professor Miles to lead a review of the UK mortgage market. The result, published at Budget 2004, was the report: "The UK mortgage market: taking a longer-term view". He is a council member of the Royal Economic Society, a research fellow of the Centre for Economic Policy Research and at the CESIFO research institute in Munich. He is a former editor of Fiscal Studies.