Treasury Select Committee Inquiry Into The Effectiveness And Impact Of Post-2008 UK Monetary Policy

This is the third in our our new Policy Paper series, written by members of the National Institute of Economic and Social Research to specifically address a public policy issue. These may be evidence submitted to a public or parliamentary enquiry or policy research commissioned by a third party organisation. In all circumstances the NIESR authors have full editorial control of these papers. We will make all policy papers available to the public  whether they have been supported by specific funding as a matter of course. Some papers may be subsequently developed into research papers.

Coordinating Monetary, Fiscal and Financial Policy - A Submission to the Treasury Committee of the UK Parliament

UK monetary policy, following the 2008 recession, was effective at preventing the crisis from having a bigger effect than it otherwise might have done. As a result of experimenting with quantitative easing (an expansion in the Bank’s balance sheet) and qualitative easing (a change in the risk composition of its balance sheet) we learned some important lessons.