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

study the transmission mechanism. With matching frictions, wage rigidities have limited effect on inflation dynamics … opposite ways leaving marginal costs and inflation virtually unaffected. …

-year period that the UK monetary authorities have pursued an explicit inflation target, using a four-factor essentially affine … nominal forward rates into expected real short rates, expected inflation, real term premia and inflation risk premia. We find … that inflation risk premia and longer-term inflation expectations fell significantly when the Bank of England was made …

fluctuations impact upon inflation and output. …

, it might be desirable from a social point of view for monetary policy to deviate from strict inflation targeting. But … quantitative analysis shows that although optimal price inflation is no longer zero, strict inflation targeting stays close to the …

effects on asset prices, demand and inflation focused on in most other studies. Using a data set available to researchers at … studies which suggest that QE boosted aggregate demand and inflation via portfolio rebalancing channels. …

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