This paper provides tests of an econometric model of the demand for UK M0. The existence of a long-run cointegrating relationship between M0 and key economic variables is established and a plausible dynamic error-correction model is estimated. A model that passes standard specification tests is...

Part 2 This paper is the second part of a study on the determinants of the broad money aggregate M4, following a similar analysis of the personal sector developed in Bank of England WORKING PAPER No 61. It models the broad money holdings of both industrial and commercial companies (ICCs) and...

In this paper a structural empirical model of the UK monetary transmission mechanism is estimated, which can be used for policy analysis and forecasting. A small system is estimated containing eight variables that theoretically have an important role in the transmission mechanism. The paper then...

Part 1 Interpreting movements in monetary aggregates is an important part of the assessment of inflationary pressures in the UK's current monetary policy framework. This paper is the first part of a follow-up study to Fisher and Vega in 1993 ( Bank of England WORKING PAPER No 21), examining the...