Suchergebnisse

Several different definitions of Domestic Credit Expansion (DCE) in the UK have been used either for official or for academic purposes, yet apart from an early paper by Art is and Nobay (1969) there has been little serious discussion of the issues involved. This expository note is intended to clarify the differences between the various definitions. Section I uses a table of assets and liabilities by sector to show the relationship between DCE, the change in money supply (ΔM) and the balance of payments/change in foreign reserves (ΔR)for a simple monetary system. Section II uses a more complex table to present three official definitions of DCE for the UK and three definitions that have been used in academic work. Section III considers the choice between the definitions in terms of the purposes for which the concept of DCE might be used. Section IV summarises the main conclusions.

Over the quarter of a century with which this book is concerned, the UK has had an extraordinarily diverse experience of monetary policy and monetary regimes. Monetary policy has been transformed, from attempts to control broad money from the supply side with the use of indirect controls on banks' lending, to an almost exclusive focus on interest rates in a context of inflation targeting. The exchange rate has at times been fixed, at other times almost perfectly flexible, and at other times again more or less managed. Meanwhile the real economy has experienced large variations in growth, toget

This book examines monetary policy, central banking and exchange rate regimes in the Middle East and North Africa. Part I covers central banking and monetary policy, while Part II covers monetary policy and exchange rate regimes. Some chapters focus on the monetary frameworks of particular countries, including Lebanon, Algeria, Syria, Tunisia, Morocco, and Turkey, outlining the different systems operated in each case, considering their successes and failures, and discussing important issues such as government policy, macroeconomic performance, inflation and inflation targeting, central bank

When the Bank of England introduced quantitative easing (QE) it emphasised effects on money and credit, but much of its empirical research has focused on effects on long‐term interest rates. We use the flow of funds to analyse the implications of QE for broad money, and argue that the financial crisis, fiscal expansion and QE may have constituted major exogenous shocks to money. Regressions in which the growth of nominal spending depends on the growth of nominal money and other variables suggest that money has had a much larger role in the period of the crisis and QE.

Alternative measures of the UK output gap are considered for 1984–2007. The real-time series is strongly affected by the rolling-time estimation of the trend, and produces a picture of the business cycle which is not consistent with contemporary perceptions of the large fluctuations of the late 1980s and early 1990s. A new, 'nearly-real', measure developed here may be better for estimating historical reaction functions. In the context of the current recession, none of these mechanically derived measures of the output gap are useful. Policymakers should make careful estimates of the likely fall in potential output on the basis of other information.