"This paper provides an overview, using extensive documentary material, of developments in U.K. macroeconomic policy in the last half-century. Rather than focusing on well-known recent changes in policy arrangements (such as the introduction of inflation targeting in 1992 or central bank...

Intro -- THE U.K.'S ROCKY ROAD TO STABILITY -- THE U.K.'S ROCKY ROAD TO STABILITY -- CONTENTS -- PREFACE -- INTRODUCTION -- TERMINOLOGICAL PRELIMINARIES -- 2A UNITED KINGDOM -- 2B INTEREST RATES, MONEY, AND CREDIT -- 2C CONSUMER PRICES -- THE NONMONETARY APPROACH TO MACROECONOMIC POLICY...

We examine the effects of a “bubble” in the foreign exchange market, defined as an exogenous process that temporarily shifts the exchange rate away from the value implied by fundamentals. The bubble process is analogous to Bernanke and Gertler's (1999) specification of an asset price bubble....

This paper provides an overview, using extensive documentary material, of developments in U.K. macroeconomic policy in the last half-century. Rather than focusing on well-known recent changes in policy arrangements (such as the introduction of inflation targeting in 1992 or central bank...

In this paper we investigate the problem of selecting an optimal horizon for inflation targeting in the United Kingdom. There are two key ways of thinking about an optimal horizon, so we look at optimal horizons for both of these interpretations. In addition, to see whether our results are...