Pushkinskaya st. 43. office 10
Rostov-on-Don, Russia
e-mail: info@hjournal.ru 
tel. +7(863) 269-88-14

cubsEN (2)

Institutional features of the UK monetary policy in the current crisis

Institutional features of the UK monetary policy in the current crisis

Journal of Economic Regulation, , Vol. 5 (no. 4),
p. 118-125

Modern financial crisis has shown the ineffectiveness of the traditional measures of monetary policy. This prompted the Bank of England, like many Central Bank move to use unconventional measures of monetary policy. In the paper the classification and comparison of different programs unconventional policy used by the Bank of England at different stages of the crisis. The analysis showed that, overall, his actions were similar to the actions of major central banks, due to the similarity of the problems encountered leading economies during the crisis. At the same time, implementing the strategy, similar strategies leading CB, the Bank of England to apply measures caused by institutional features of the UK financial market. This conclusion is also supported by the work carried out by comparing the actions of the Bank of England and the Federal Reserve to achieve the same goals: increasing liquidity in the economy and the impact on long-term interest rate.

Keywords: institutional factors; unconventional monetary policy; the monetary policy of the Bank of England

  • Allen F., Chui M. K. F. and Maddaloni A. (2003). Financial system in Europe, the USA, and Asia // Oxford Review of Economic Policy, vol. 20, no. 4.
  • Bridges J. and Thomas R. (2012). The impact of QE on the UK economy —some supportive monetarist arithmetic // Bank of England, Working Paper no. 442, January.
  • Cecioni M., Ferrero M. and Secchi A. (2011). Unconventional monetary policy in theory and in practice // Questioni di Economia e Finanza, no. 102, September.
  • Committee on Monetary, Financial and Balance of Payments statistics. UK’s Special Liquidity Scheme // CFMB, 11 February 2009.
  • Curdia V. and Woodford M. (2009). Conventional and unconventional monetary policy // CEPR, CEPR Discussion Paper no. 7514, Oct.
  • Doh T. (2010). The efficacy of large-scale asset purchases at the zero lower bound // Economic Review, vol. 95, no. 2, pp. 5-34.
  • Fisher P. (2009). The Bank of England’s balance sheet: Monetary policy and liquidity provision during the financial crisis // Excel Centre, London, 19 November.
  • Fisher P. (2010). Managing liquidity in the system: The Bank’s liquidity insurance operations // The Loan Market Association Syndicated Loans Conference, London, 30 September.
  • Gagno J., Raskin M., Remache J. and Sack B. (2010). Large-scale asset purchases by the Federal Reserve: Did they work? // Federal Reserve Bank of New York Staff Reports.
  • Hamilton J. D. and Cynthia W. (2011). The effectiveness of alternative monetary policy tools in a zero lower bound environment // Working Paper, University of California, San Diego, April.
  • Harrison R. (2012). Asset purchase policy at the effective lower bound for interest rates // Bank of England Working Paper no. 444.
  • Joyce M., Tong M. and Woods R. (2011). The United Kingdom’s quantitative easing policy: design, operation and impact // Bank of England’s Quarterly Bulletin, Q3, vol. 51. no. 3.
  • International Monetary Fund. Inconventional monetary policies — recent experience and prospects // IMF, August 2013.
  • Kapetanios G., Mumtaz H., Stevens I. and Theodoridis K. (2012). Assessing the economy-wide effects of quantitative easing // Bank of England Working Paper no. 442, January.
  • Kashyap, Anil K. and Stein J. (2000). What do a million observations on banks say about the transmission of monetary policy? // American Economic Review, no. 90(3), pp. 407-428.
  • Neely C J. (2010). The large scale asset purchases had large international effects // Federal Reserve Bank of St. Louis, Working Paper no. 2010-018.
  • Nelson E. (2011). Key aspects of quantitative easing in the United States and the United Kingdom // Federal Reserve Board, September 26.
  • Oda Nobuyuki and Ueda K. (2005). The effect of the Bank of Japan’s zero interest rate commitment and quantitative monetary easing on the yield curve: A macro-finance approach // Bank of Japan, Working Paper no. 05-E-6.
  • Shirakawa M. (2002). One year under ‘Quantitative Easing’ // IMES Discussion Paper Series, Bank of Japan, no. 2002-E-3. (http://www.bankofengland.co.uk - Access Date: 21.10.2014).
Publisher: Ltd. "Humanitarian perspectives"
Founder: Southern Federal University
ISSN: 2078-5429