This paper formed part of the Bank of England's contribution to a study by the G10 Deputies on saving, investment and real interest rates. It investigates a technique which allows economic times series to be decomposed into common trends and common cycles. This is applied to the movements of...

In this paper a structural empirical model of the UK monetary transmission mechanism is estimated, which can be used for policy analysis and forecasting. A small system is estimated containing eight variables that theoretically have an important role in the transmission mechanism. The paper then...

This article reviews developments in sterling financial markets since the 2010 Q1 Quarterly Bulletin up to 21 May 2010. The article also reviews the Bank’s official operations.

This article reviews developments in sterling financial markets since the 2009 Q3 Quarterly Bulletin up to end-November 2009. The article also reviews the Bank’s official operations.

The sterling effective exchange rate has depreciated significantly since the start of the financial market crisis in August 2007. Movements in sterling affect UK monetary policy via their potential impacts on CPI inflation prospects, where it is important to consider the reasons behind the...

This article reviews developments in global financial markets since the 2009 Q2 Quarterly Bulletin up to end-August 2009. The article also reviews the Bank’s official operations.

The recent corporate failures in the US and in Europe have considerably damaged investors’ confidence in the functioning of financial markets and the ability of the regulatory framework to safeguard their interest and prevent fraud. These episodes demonstrate that market failures exist, which...

This paper investigates the extent to which changes in the quantity and cost of non-bank finance impact on the quantity and interest cost of UK-owned banks' corporate lending. The results give some support to the view that there is substitution between market finance and bank loans - loan growth...

Using panel regression analysis, the factors that may help to explain increases in loan-loss provisions for the major UK banks are investigated. Explanatory variables reviewed include aggregate variables such as GDP growth as well as bank-specific factors such as the composition of the loan...

This article reviews developments in sterling financial markets, including the Bank’s official operations, since the 2010 Q2 Quarterly Bulletin up to 27 August 2010. The article also summarises market intelligence on selected topical issues relating to market functioning.