- Home
- Publications
- Unwinding: A Tale Of Corridors And Floors
Unwinding: a tale of corridors and floors
Authors
Related Themes
Political EconomyTags
JEL Code
E43, E44
Journal
National Institute Economic Review
Publisher
Sage Publications, London
External Resources
http://journals.sagepub.com/doi/full/10.1177/002795011724100116
Issue
241
I discuss six tools available to monetary policy makers. Three of these have been used since the inception of central banking.Three are new and were introduced in the aftermath of the 2008 financial crisis. I argue that, when the UK Monetary Policy Committee raises the interest rate, it should maintain a large balance sheet that consists of both risky and safe assets.Further, the Bank should trade the risk composition of its balance sheet to promote the stability of asset prices.
Related Blog Posts
What Can Policy Makers Learn From Adam Smith?
Sayantan Ghosal
Graeme Roy
11 Mar 2024
5 min read
Reflections on the 2024 Spring Budget: What Was and Wasn’t Addressed
Monica George Michail
Stephen Millard
11 Mar 2024
5 min read
How the Chancellor’s Budget Could Help Households and the Struggling Regions
Arnab Bhattacharjee
Robyn Smith
Adrian Pabst
04 Mar 2024
6 min read
Adam Smith’s Division of Labour in Today’s World of Global Markets
Diane Coyle
25 Jan 2024
4 min read
Related Projects
Related News
Related Publications
Geopolitical Risks and the Global Economy
07 Feb 2024
Global Economic Outlook Box Analysis
Adam Smith and the Bankers: Retrospect and Prospect
04 Jan 2024
National Institute Economic Review
On the Promises and Perils of Smithian Growth: From the Pin Factory to AI
04 Jan 2024
National Institute Economic Review