the UK economy. We find that a 1 percentage point increase in the policy rate reduces output by up to 0.6% and inflation …

substantial time variation, with the level factor moving closely with measures of inflation expectations. Our estimates indicate a … adopted an inflation-targeting regime. During the inflation-targeting regime, monetary policy shocks have been more muted and … inflation expectations have been lower than in the pre-1992 era. The link between the macroeconomy and the yield curve has also …

fluctuations impact upon inflation and output. …

higher inflation through a standard New Keynesian Phillips Curve. However, the imperfect substitutability between bonds that …

2% by the start of 2011, with an impact on inflation of 1 percentage point around a year later. These estimates are …

spending growth to a rate consistent with meeting the CPI inflation target in the medium term. By February 2010, the MPC had …