The aim of this article is to describe how portfolio insurance works, the main strategies employed and how these have evolved over recent years, and the possible links between their use and financial market stability. The key benefit of portfolio insurance is that it enables financial risk to be...

Part 2 This paper is the second part of a study on the determinants of the broad money aggregate M4, following a similar analysis of the personal sector developed in Bank of England WORKING PAPER No 61. It models the broad money holdings of both industrial and commercial companies (ICCs) and...

Part 1 Interpreting movements in monetary aggregates is an important part of the assessment of inflationary pressures in the UK's current monetary policy framework. This paper is the first part of a follow-up study to Fisher and Vega in 1993 ( Bank of England WORKING PAPER No 21), examining the...

This paper sets out an empirical framework for examining the dynamics of money and credit at a sectoral level. Our purpose is to understand and monitor the transmission mechanisms of different policies that affect the financial sector, with an eye to practical policy analysis. We use the banking...