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

Bank’s Monetary Policy Committee felt that additional measures were necessary to meet the inflation target in the medium … the aim of injecting money into the economy and boosting nominal spending, in order to help achieve the Bank’s inflation … output and inflation: a large Bayesian VAR; a change-point structural VAR; and a time-varying parameter VAR. Our preferred …

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

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 …