A century and three-quarters of bank rate and long-term interest rates in the United Kingdom

Simple item page
buir.contributor.authorBerument, Hakan
dc.citation.epage47en_US
dc.citation.issueNumber1en_US
dc.citation.spage26en_US
dc.citation.volumeNumber20en_US
dc.contributor.authorBerument, Hakanen_US
dc.contributor.authorCabezon, E.en_US
dc.contributor.authorFroyen, R.en_US
dc.date.accessioned2018-04-12T11:02:32Z
dc.date.available2018-04-12T11:02:32Zen_US
dc.date.issued2017en_US
dc.departmentDepartment of Economicsen_US
dc.description.abstractOver the years from 1844 to 2013, the United Kingdom had several distinct monetary policy regimes. This paper examines the relationship between the Bank of England policy rate and UK long-term rates in each regime. Our starting point is R. G. Hawtrey's A century of Bank Rate, which focused mainly on the classical Gold Standard. We also examine the Interwar years, post-Second World War years of policy by discretion and the recent regime of inflation targeting. We find that policy regimes that firmly anchor inflationary expectations result in long-run interest rates becoming less responsive to changes in monetary policy rates. This suggests a conflict between a regime that anchors inflationary expectations and one that allows a central bank to have significant effects on long-term rates via a short-term policy rate. © 2017 John Wiley & Sons Ltden_US
dc.description.provenanceMade available in DSpace on 2018-04-12T11:02:32Z (GMT). No. of bitstreams: 1 bilkent-research-paper.pdf: 179475 bytes, checksum: ea0bedeb05ac9ccfb983c327e155f0c2 (MD5) Previous issue date: 2017en_US
dc.embargo.release2019-05-19en_US
dc.identifier.doi10.1111/infi.12101en_US
dc.identifier.eissn1468-2362
dc.identifier.issn1367-0271
dc.identifier.urihttp://hdl.handle.net/11693/37088en_US
dc.language.isoEnglishen_US
dc.publisherWiley-Blackwell Publishing Ltd.en_US
dc.relation.isversionofhttp://dx.doi.org/10.1111/infi.12101en_US
dc.source.titleInternational Financeen_US
dc.subjectInflation anchorsen_US
dc.subjectLong-term interest rateen_US
dc.subjectMonetary policyen_US
dc.titleA century and three-quarters of bank rate and long-term interest rates in the United Kingdomen_US
dc.typeArticleen_US

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
A century and three-quarters of Bank Rate andlong-term interest rates in the United Kingdom.pdf
Size:
1.66 MB
Format:
Adobe Portable Document Format
Description:
Download

Collections

Department of Economics