We examine potential nonlinear behaviour in the conduct of monetary policy by the Bank of England. We find significant nonlinearity in this policy setting, and in particular that the standard Taylor rule really only begins to bite once expected inflation is significantly above its target. This...

This paper examines in a non-parametric setup whether a long-run relationship exists between monetary fundamentals and the dollar spot exchange rates for 19 countries. Although the Johansen's parametric approach failed to retrieve a long-relationship for any of the countries considered, the...

We examine potential nonlinear behaviour in the conduct of monetary policy by the Bank of England. We find significant nonlinearity in this policy setting, and in particular that the standard Taylor rule really only begins to bite once expected inflation is significantly above its target. This...