The recent financial crisis has put the spotlight on the rapid rise in credit which preceded it. In this paper, we provide an empirical and theoretical analysis of the credit boom and the macroeconomic context in which it developed. We find that the boom was unusually long and associated with...

In his inaugural speech as a member of the Monetary Policy Committee, Andrew Sentance sets out his views on the principles which underpin the successful conduct of monetary policy and discusses the factors underpinning the growth of the supply-side potential of the UK economy. Since the...