The recent financial crisis and subsequent deterioration in macroeconomic outcomes have raised question marks over the framework for monetary policy in the United Kingdom. This paper examines the performance of the UK's monetary policy framework in the light of these questions. Far from...

This paper examines the dynamic path of aggregate consumption resulting from the relaxation of borrowing constraints and changes in the age composition of the population. Using simulation analysis, it indicates that, because of overlapping generations, the adjustment to a new steady-state...

This paper offers a critique of the macroeconomic policy stance of the U.K. Conservative administration from a policy optimization perspective. Attention is focused on three particular issues which, it is argued, require clarification in the medium term financial strategy. The first concerns the...

This paper is concerned with the allocation of total final expenditure between different categories of domestic net output and imported goods and services. In contrast to previous studies, the authors show that the use of net output data means that allowance has to be made for both consumer...