Monetary policy normals, future and past

| Publication date: 2 Aug 2017 | Theme: Macroeconomics | External Author(s): Sinclair, P; Allen, W A | JEL Classification: E52, E58, G21 | Journal: National Institute Economic Review Issue 241 | Publisher: Sage Publications, London

The paper looks at the ‘new normal’ in so many of the world’s central banks, and specifically the UK. It examines the position of the monetary policy framework, instrument settings, the underlying models, unconventional policy measures, real interest rates, and the interface with macroprudential policy. It explores both the advantages and challenges involved in any move to return towards pre-crisis arrangements, and offers suggestions for possible ways in which current policy dilemmas might be resolved.

Keyword tags: 
regulations for banks
interest rate normalisation

Research programmes