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Monetary policy under the Labour government 1997- 2010: the first 13 years of the MPC

  • David, Cobham

This paper examines the performance of monetary policy under the new framework established in 1997 up to the end of the Labour government in May 2010. Performance was relatively good in the years before the crisis, but much weaker from 2008. The new framework largely neglected open economy issues, while the Treasury’s EMU assessment in 2003 can be interpreted in different ways. inflation targeting in the UK and elsewhere may have contributed in some way to the eruption and depth of the financial crisis from 2008, but UK monetary policy responded in a bold and innovative way. Overall, the design and operation of monetary policy were much better than in earlier periods, but there remains scope for significant further evolution.

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File URL: http://hdl.handle.net/10943/458
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Paper provided by Scottish Institute for Research in Economics (SIRE) in its series SIRE Discussion Papers with number 2013-23.

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Date of creation: 2013
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Handle: RePEc:edn:sirdps:458
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  1. Besley, Timothy & Meads, Neil & Surico, Paolo, 2007. "Insiders versus Outsiders in Monetary Policy-Making," Discussion Papers 20, Monetary Policy Committee Unit, Bank of England.
  2. Clarida, Richard & Gali, Jordi & Gertler, Mark, 1997. "Monetary Policy Rules in Practice: Some International Evidence," Working Papers 97-32, C.V. Starr Center for Applied Economics, New York University.
  3. David Cobham, 2012. "Central banks and house prices in the run-up to the crisis," Heriot-Watt University Economics Discussion Papers 1204, Department of Economics, School of Management and Languages, Heriot Watt University.
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  10. repec:ags:aaea07:403 is not listed on IDEAS
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  13. Jagjit S. Chadha & Peter Macmillan & Charles Nolan, 2007. "Independence Day For The 'Old Lady': A Natural Experiment On The Implications Of Central Bank Independence," Manchester School, University of Manchester, vol. 75(3), pages 311-327, 06.
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  18. Balls, Edward, 1998. "Open Macroeconomics in an Open Economy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(2), pages 113-32, May.
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