UK monetary and fiscal policy since the great recession - an evaluation

Le, Vo Phuong Mai ORCID: https://orcid.org/0000-0003-3374-9694, Meenagh, David ORCID: https://orcid.org/0000-0002-9930-7947, Minford, Patrick ORCID: https://orcid.org/0000-0003-2499-935X and Wang, Ziqing 2024. UK monetary and fiscal policy since the great recession - an evaluation. Applied Economics 10.1080/00036846.2024.2393897 Item availability restricted.

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Abstract

This paper quantifies the economic impacts of the Bank of England’s quantitative easing (QE) policy, implemented in response to the global financial crisis. Using an open economy Dynamic Stochastic General Equilibrium (DSGE) model, we demonstrate that monetary policy can remain effective even when nominal interest rates have reached the zero lower bound. Our analysis shows that QE measures have significantly influenced economic stabilization. We estimate and test the model using the indirect inference method, and our simulations indicate that a nominal GDP targeting rule implemented through money supply could be the most effective monetary policy regime. Additionally, our findings suggest that a robust, monetary active regime with nominal GDP targeting could significantly enhance economic stabilization efforts.

Item Type:	Article
Date Type:	Published Online
Status:	In Press
Schools:	Business (Including Economics)
Publisher:	Taylor and Francis Group
ISSN:	0003-6846
Date of First Compliant Deposit:	2 September 2024
Date of Acceptance:	1 August 2024
Last Modified:	04 Sep 2024 09:20
URI:	https://orca.cardiff.ac.uk/id/eprint/171720

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