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A Policy Reaction Function for Nominal Interest Rates in the UK: 1972Q3-1982Q4

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  • Dua, Pami
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Abstract

The U.K. authorities' reaction function for the Treasury bill rate is estimated over the p eriod 1972, quarter 3, to 1982, quarter 4. The variables included in the reaction function are obtained from various issues of the Bank of England Quarterly Bulletin and the National Institute Economic Revie w. The estimated reaction function shows the importance the authoriti es attach to the level of economic activity, the conditions in the fi nancial markets, the deviation of the actual rate of growth of the mo ney supply from the target rate of growth, the value of sterling, and the level of competitiveness. Copyright 1988 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

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Article provided by Wiley Blackwell in its journal Bulletin of Economic Research.

Volume (Year): 40 (1988)
Issue (Month): 1 (January)
Pages: 57-71

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Handle: RePEc:bla:buecrs:v:40:y:1988:i:1:p:57-71

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