The size and growth of the so‐called “black economy” has provided a great deal of discussion in recent years. Typically the discussion has been confined to editorials and articles in leading newspapers, but of late politicians, civil servants and even academics, on both sides of the...

In contrast to an earlier article in the Review by Artis and Nobay (no. 49, August 1969), this paper obtains equations for the UK similar to those of the Federal Reserve Bank of St. Louis for the US economy. Such equations have strong monetarist policy implications. However, quite apart from the...