Unconventional monetary policy in the UK: a modern money critique

Sharpe, T.P. and Watts, M.J., 2013. Unconventional monetary policy in the UK: a modern money critique. Economic Issues, 18 (2), pp. 41-64. ISSN 1363-7029


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The ongoing Global Financial Crisis (GFC) has posed a growing challenge to the implementation of monetary stimulus measures in both sovereign (e.g. US, UK, Japan) and non-sovereign (eurozone) economies. With the policy rate close to the zero nominal bound, the UK has relied on quantitative easing, ostensibly to improve market liquidity and/or stimulate economic activity, despite being freed from the policy constraints of a non-sovereign economy. The evidence regarding the macroeconomic effects of quantitative easing is, however, largely inconclusive. Meanwhile, UK growth forecasts have been revised downwards but, at the time of writing, the government remains committed to its fiscal austerity programme. In this paper we explore the origins of quantitative easing, its underlying objectives, the theoretical arguments for its use and the empirical evidence concerning its impact. Our analysis focuses on the policies of the Bank of England since the advent of the GFC, and is informed by the principles of Modern Monetary Theory.

Item Type: Journal article
Publication Title: Economic Issues
Creators: Sharpe, T.P. and Watts, M.J.
Publisher: Economic Issues Education Fund
Place of Publication: Nottingham
Date: 2013
Volume: 18
Number: 2
ISSN: 1363-7029
Divisions: Schools > Nottingham Business School
Record created by: EPrints Services
Date Added: 09 Oct 2015 10:30
Last Modified: 19 Oct 2015 14:33
URI: https://irep.ntu.ac.uk/id/eprint/13976

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