Bank Underground

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8 : 24

To the lower bound and back: measuring UK monetary conditions

Natalie Burr, Julian Reynolds and Mike Joyce Monetary policymakers have a number of tools they can use to influence monetary conditions, in order to maintain price stability. While central banks
8 : 4

The transmission channels of geopolitical risk

Samuel Smith and Marco Pinchetti Recent events in the Middle East, as well as Russia's invasion of Ukraine, have sparked renewed interest in the consequences of geopolitical tensions for global
8 : 4

Flow of funds and the UK real economy

Laura Achiro, Gerry Gunner and Neha Bora A flow of funds framework is a way of understanding and tracking the movement of financial assets between different sectors of the economy. This blog
9 : 4

Markup matters: monetary policy works through aspirations

Tim Willems and Rick van der Ploeg Since the post-Covid rise in inflation has been accompanied by strong wage growth, interactions between wage and price-setters, each wishing to attain a certain
9 : 4

Another reason to care about investment taxes

Alex Kontoghiorghes Do lower taxes lead to higher stock prices? Do companies consider tax rates when deciding on their dividend pay-outs and whether to issue new capital? If you're thinking '
9 : 4

New money, old money

David Rule and Iain de Weymarn Technologies such as distributed ledgers create the possibility of new forms of digital money, whether privately-issued 'stable coins', tokenised commercial bank
9 : 4

How resilient are UK corporate bond issuers to refinancing risks?

Laura Achiro and Neha Bora Central banks in most advanced economies have tightened monetary policy by raising interest rates. Tighter financing conditions may make it harder for some businesses to
9 : 4

Cash stuffing versus girl maths: how do people budget in a digital world?

BankUnderground posted: " Zahra Damji and Eleanor Hammerton The best purchases in life are free. How's that possible, you ask? Well, pay with cash of course! The idea that anything bought with
9 : 4

Forecasting UK inflation in the presence of large global shocks

BankUnderground posted: " Dario Bonciani and Johannes Fischer The UK economy has been hit by significant terms-of-trade shocks, most notably the rise in energy prices following the Russian
9 : 4

Stressed or in distress? How best to measure corporate vulnerability

BankUnderground posted: " Alice Crundwell and William Bennett Accurate measures of the number of firms at risk of failure are becoming increasingly important for policymakers, as corporate
2 : 44

CPI-weighted wage growth

Read on blog or Reader BankUnderground posted: " Josh Martin The Monetary Policy Committee has recently looked at wage growth as an important indicator of inflation persistence. One way that wages
9 : 4

Mortgage affordability for borrowers who re-fixed in 2023

Read on blog or Reader BankUnderground posted: " Daniel Norris, Elio Cucullo and Vasilis Jacovides When borrowers enter a fixed-rate mortgage, lenders test whether they could continue to afford
9 : 4

Schrodinger’s market: what the quantum internet could mean for the financial system

BankUnderground posted: " Ed Hill Once the stuff of science fiction, quantum technologies are advancing fast. Individual quantum computers are finding a range of applications, primarily driven by
9 : 4

Beyond the average: patterns in UK price data at the micro level

BankUnderground posted: " Lennart Brandt, Natalie Burr and Krisztian Gado The Bank of England has a 2% annual inflation rate target in the ONS' consumer prices index. But looking at its 700
9 : 15

How auction design can make a difference: the case of the Bank’s Indexed Long-Term Repo Facility

BankUnderground posted: " Julia Giese and Charlotte Grace In response to the global financial crisis, the Bank of England (BoE) began using Product-Mix Auctions (PMA) to provide liquidity
9 : 4

Top 5 posts 2023

BankUnderground posted: " Rebecca Freeman As another year draws to an end and the blog prepares for some downtime over the festive period, we wanted to take a look back at the blog in 2023. In
9 : 4

Is UK monetary policy driving private housing rents?

BankUnderground posted: " Daniel Albuquerque and Jamie Lenney Rent prices have risen by 9% on average in England since the Bank of England's Monetary Policy Committee (MPC) started raising
9 : 4

[New post] Global R*

BankUnderground posted: " Ambrogio Cesa-Bianchi, Richard Harrison and Rana Sajedi Recent increases in interest rates around the world, following a multi-decade decline, have intensified the debate
9 : 4

[New post] Supply chain disruptions: shocks, links, and hidden exposure

BankUnderground posted: " Rebecca Freeman, Richard Baldwin and Angelos Theodorakopoulos Supply chain disruptions are routinely blamed for things ranging from elevated inflation to shortages of
9 : 4

[New post] Why lower house prices could lead to higher mortgage rates

BankUnderground posted: " Fergus Cumming and Danny Walker Bank Rate has risen by more than 5 percentage points in the UK over the past couple of years. This has led to much higher mortgage rates