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What might be driving the need to rebalance in the United Kingdom?

Author

Listed:
  • Stuart Berry

    (Bank of England)

  • Matthew Corder

    (Bank of England)

  • Richard Williams

    (Bank of England)

Abstract

Low national saving, a persistent current account deficit and the rapid expansion of balance sheets are potential reasons why the UK economy needs to rebalance. Global factors are likely to have been an important driver of these developments, but domestic factors have played an important role in the longer-term trends. This article looks at how the potential drivers of the need for rebalancing have evolved and how they fit together.

Suggested Citation

  • Stuart Berry & Matthew Corder & Richard Williams, 2012. "What might be driving the need to rebalance in the United Kingdom?," Bank of England Quarterly Bulletin, Bank of England, vol. 52(1), pages 20-30.
    • Handle: RePEc:boe:qbullt:0067
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    References listed on IDEAS

    as
    1. Kate Reinold, 2011. "Housing equity withdrawal since the financial crisis," Bank of England Quarterly Bulletin, Bank of England, vol. 51(2), pages 127-133.
    2. Kishore Kamath & Varun Paul, 2011. "Understanding recent developments in UK external trade," Bank of England Quarterly Bulletin, Bank of England, vol. 51(4), pages 294-304.
    3. Andrew Benito & Philip Bunn, 2011. "Understanding labour force participation in the United Kingdom," Bank of England Quarterly Bulletin, Bank of England, vol. 51(1), pages 36-42.
    4. Ricardo J. Caballero & Emmanuel Farhi & Pierre-Olivier Gourinchas, 2008. "An Equilibrium Model of "Global Imbalances" and Low Interest Rates," American Economic Review, American Economic Association, vol. 98(1), pages 358-393, March.
    5. Stuart Berry & Richard Williams & Matthew Waldron, 2009. "Household saving," Bank of England Quarterly Bulletin, Bank of England, vol. 49(3), pages 191-201.
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