We develop a dynamic computational network model of the banking system where fire sales provide the amplification mechanism of financial shocks. Each period a finite number of banks offers a large, but finite, number of loans to households. Banks with excess liquidity also offer loans to other...

In this article, the lambdagram, proposed by Yule in his last time series paper published in 1945, is revisited using modern theoretical and computational developments unavailable to him. Although it is not particularly good at identifying stationary processes, the lambdagram is found to be much...

We report estimates of the fiscal multiplier for interwar Britain based on quarterly data, time-series econometrics, and 'defense news'. We find that the government expenditure multiplier was in the range 0.5 to 0.8, much lower than previous estimates. The scope for a Keynesian solution to...

The recent volatile behaviour of U.K. inflation has been officially attributed to a sequence of 'unusual' price changes, prompting renewed interest in the construction of measures of 'core inflation', from which such unusual price changes may be down-weighted or even excluded. This paper...