This paper outlines work done recently to investigate the impact of financial liberalization on monetary policy effectiveness. We look at the case of United Kingdom consumption behavior, in particular the savings ratio. Over the 1990s, this sector has been heavily influenced by comprehensive...

A set of newly added questions in the 2011 to 2014 Bank of England/NMG Consulting Survey reveals that British households are estimated to change their consumption by significantly more in reaction to temporary and unanticipated falls in income than to rises of the same size. Household balance...