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Bank Lending To Industrial and Commercial Companies in Three Models of the UK Economy

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  • Cuthbertson, Keith
  • Foster, Nigel

Abstract

In this article we compare the determination of bank advances to UK industrial and commercial companies (ICC) in three forecasting models of the British economy: those developed at the National Institute of Economic and Social Research (NIESR), at the Treasury (HMT) and at the Bank of England (BOE). In each of these models the private sector's demand for loans is an important element in the determination of the broadly-defined money stock (£M3), the rate of growth of which has been an important intermediate target of macroeconomic policy in recent years.

Suggested Citation

  • Cuthbertson, Keith & Foster, Nigel, 1982. "Bank Lending To Industrial and Commercial Companies in Three Models of the UK Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 102, pages 63-77, November.
    • Handle: RePEc:cup:nierev:v:102:y:1982:i::p:63-77_6
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