floor policy

Publication date: 2 Aug 2017 | Publication type: National Institute Economic Review | Theme: Macroeconomics, Britain & Finance | Authors: Farmer, R | JEL classification: E43, E44 | Journal: National Institute Economic Review Issue 241 | Publisher: Sage Publications, London
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...