This article reviews developments in sterling financial markets, including the Bank’s official operations, between the 2012 Q1 Quarterly Bulletin and 31 May 2012. The article also summarises market intelligence on selected topical issues relating to market functioning.

Because of the difficulty in measuring investment in intangible assets and frequent data revisions, estimates based on National Accounts investment data provide an imperfect measure of the capital stock. Following the influential work by Robert Hall for the United States, this paper provides an...

To match the stylised facts of goods and labour markets, the canonical New Keynesian model augments the optimising neoclassical growth model with nominal and real rigidities. We ask what the implications of this type of model are for asset prices. Using a second-order numerical solution to the...

To match the stylised facts of goods and labour markets, the canonical New Keynesian model augments the optimising neoclassical growth model with nominal and real rigidities. We ask what the implications of this type of model are for asset prices. Using a second-order approximation, we examine...

This article reviews developments in sterling financial markets, including the Bank’s official operations, between the 2011 Q4 Quarterly Bulletin and 9 March 2012. The article also summarises market intelligence on selected topical issues relating to market functioning.

The Bank of England introduced the Special Liquidity Scheme (SLS) in April 2008 to improve the liquidity position of the UK banking system. It did so by helping banks finance assets that had got stuck on their balance sheets following the closure of some asset-backed securities markets from 2007...

This article reviews developments in sterling financial markets, including the Bank’s official operations, between the 2011 Q2 Quarterly Bulletin and 26 August 2011. The article also summarises market intelligence on selected topical issues relating to market functioning.

This article reviews developments in sterling financial markets, including the Bank’s official operations, between the 2011 Q3 Quarterly Bulletin and 25 November 2011. The article also summarises market intelligence on selected topical issues relating to market functioning.

We investigate the behavior of asset prices in a typical New Keynesian macro model. Using a second-order approximation, we examine bond and equity returns, the equity risk premium, and the behavior of the real and nominal term structure. As documented in the literature, our results suggest that...

This article reviews developments in sterling financial markets, including the Bank’s official operations, between the 2010 Q4 Quarterly Bulletin and 25 February 2011. The article also summarises market intelligence on selected topical issues relating to market functioning.