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Coordinating Monetary, Fiscal and Financial Policy – A Submission to the Treasury Committee of the UK Parliament

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  • Roger Farmer

Abstract

UK monetary policy, following the 2008 recession, was effective at preventing the crisis from having a bigger effect than it otherwise might have done. As a result of experimenting with quantitative easing (an expansion in the Bank's balance sheet) and qualitative easing (a change in the risk composition of its balance sheet) we learned some important lessons. This submission to the Treasury Select Committee summarizes my understanding of what those lessons were and what they teach us about the future conduct of monetary, fiscal and financial policy. Whenever my recommendations differ from the existing dominant macroeconomic paradigm, I explain why.

Suggested Citation

  • Roger Farmer, 2017. "Coordinating Monetary, Fiscal and Financial Policy – A Submission to the Treasury Committee of the UK Parliament," National Institute of Economic and Social Research (NIESR) Policy Papers 02, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrp:2
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    References listed on IDEAS

    as
    1. Roger E. A. Farmer, 2012. "Confidence, Crashes and Animal Spirits," Economic Journal, Royal Economic Society, vol. 122(559), pages 155-172, March.
    2. Farmer, Roger, 2013. "The Natural Rate Hypothesis: an idea past its sell-by date," Bank of England Quarterly Bulletin, Bank of England, vol. 53(3), pages 244-256.
    3. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    4. Farmer, Roger, 2010. "Expectations, Employment and Prices," OUP Catalogue, Oxford University Press, number 9780195397901.
    5. Roger E.A. Farmer, 2012. "Qualitative Easing: How it Works and Why it Matters," NBER Working Papers 18421, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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