monetary policy

Publication date: 20 Mar 2018 | Publication type: NIESR Discussion Paper | Theme: Macroeconomics | Authors: Moessner, R | JEL classification: E58, G15 | NIESR discussion paper number: 489
We study the effects of the announcements of ECB asset purchases and of financial stability measures in the euro area in the wake of the global financial crisis and the euro area sovereign debt crisis on ten-year government bond term premia in eleven euro area countries. We find that the term...
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...
Publication date: 8 May 2017 | Publication type: General Election Briefing | Theme: Macroeconomics | Authors: Chadha, J S Issue 1
Key points: The conventional wisdom is that this election is about the UK’s decision to leave the EU and this is clearly a critical issue. But political parties should not shy away from answering the question of Britain’s underlying economic weakness. The disappointing growth in the level of GDP...
Publication date: 4 Nov 2015 | Publication type: National Institute Economic Review | External authors: Chadha, J S | JEL classification: E52, E58, N1 | Journal: National Institute Economic Review Issue 234 | Publisher: Sage Publications, London
This article outlines some of the intellectual lessons learnt by central bankers during the financial crisis. The key question is whether a broader range of policy options than simple inflation targeting has to be considered in order to limit instability. Interactions with overseas pools of savings...
Publication date: 4 Nov 2015 | Publication type: National Institute Economic Review | External authors: Kimball, M S | JEL classification: E52, E58, E42, E43, E41, E31 | Journal: National Institute Economic Review Issue 234 | Publisher: Sage Publications, London
As long as all interest rates move in tandem – including the rate of return on paper currency – economic theory suggests no important difference between interest rate changes in the positive region and interest rate changes in the negative region. Indeed, in standard models, only the real interest...
Publication date: 4 Nov 2015 | Publication type: National Institute Economic Review | Authors: Armstrong, A, Ebell, M | Journal: National Institute Economic Review Issue 234 | Publisher: Sage Publications, London
The world’s four major central banks have turned to new forms of monetary policy to support demand during the Global Financial Crisis.¹ The conventional policy instrument of overnight interest rates was reduced to close to zero per cent within eighteen months of the crisis.² This presents a problem...