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The financial crisis of 2007-11 has now been analysed and explained from almost every conceivable standpoint. Far less attention has been paid to the long business cycle expansion that started in 1992 and provided an exceptional period of macroeconomic stability in the UK. To many it seemed that the main problem of the UK economy had been solved: that of sustained non-inflationary economic growth. This book brings together senior macroeconomists from universities and the Bank of England to look at what policy-making lessons can be learned from looking at the period of expansion that preceded the financial crisis. It does so with the twin aims of encouraging more policy-focused research on the UK and encouraging policy debate in the aftermath of the financial crisis and the prolonged economic recession. Students, researchers and practitioners with an interest in the UK economy will need to absorb the lessons of this book.
List of contents
Introduction Jagjit Chadha, Alec Crystal, Joe Pearlman, Peter Smith and Stephen Wright; 1. Prospects for UK growth in the aftermath of the financial crisis Nicholas Oulton; 2. Labor market and monetary policy reforms in the UK: a structural interpretation of the implications Francesco Zanetti; 3. Property income and the balance of payments Tomas Key, Varun Paul, Martin Weale and Tomasz Wieladek; 4. UK broad money growth in the long expansion, 1992-2007: what can it tell us about the role of money? Michael McLeay and Ryland Thomas; 5. An old fashioned banking crisis: credit growth and loan losses in the UK, 1997-2012 Alistair Milne and Justine A. Wood; 6. Household debt and spending in the United Kingdom Philip Bunn and May Rostom; 7. MPC decision making, the long expansion and the crisis: integration with the global economy, heterogeneity and network dynamics Arnab Bhattacharjee and Sean Holly; 8. Nine votes, one view and the never-ending consensus on the MPC during the great stability Richard Barwell; 9. Emerging markets and import prices during the long expansion John Lewis and Jumana Saleheen; 10. UK fiscal policy before the crisis Paul Johnson.
About the author
Jagjit Chadha is Professor of Economics at the University of Kent, Canterbury.Alec Crystal is Professor Emeritus of Money and Banking at the Cass Business School, London.Joseph Pearlman is Professor of Economics at City University London.Peter Smith is Professor of Economics and Finance at the University of York.Stephen Wright is Professor of Economics at Birkbeck, University of London.
Summary
Not enough attention has been paid to the long business cycle expansion that started in 1992 and provided an exceptional period of macroeconomic stability in the UK. This book brings together senior macroeconomists to look at what policy-making lessons can be learned from this period of expansion.
