Post 2007 crisis unconventional monetary policy in the UK
type: CreativeWork
description: The main focus of this PhD thesis is to investigate the unconventional monetary policy tools introduced by the Bank of England (BoE) in its response to the recent financial crisis and to analyse its impact on the UK economy and especially the banking sector. The thesis consists of four chapters; an introductory chapter and three self-contained chapters. The first chapter mainly inspects the types and the sizes of the unconventional interventions of the monetary authorities in the UK, the US, and the EU after the collapse of Lehman Brothers in 2008. It also describes the transmission channels through which the impact of the unconventional monetary policies is delivered into the wide economy, and includes a survey of the literature of quantitative easing. The second chapter employs a flow of funds (FOFs) analysis based on Godley and Lavoie (2007) balance sheet framework using ONS sectoral data for the period between 2007 and 2011. It focuses on two distinct sub-periods (2007-2008 and 2009-2011) to assess the initial effects of mid-2007 financial crisis on the UK economy and examine the influence of BoE’s asset purchase program (APP) on the sectoral financial positions in the main financial asset categories. The analysis implicates five main results. First, APP was unsuccessful in expanding bank lending which dropped by about £208 billion in the 2009-2011 period. Second, APP might have positive effects on debt securities and equity prices and hence consumer wealth. Third, through reducing the cost of borrowing, it appears that APP induced the majority of sectors to issue more debt securities. Fourth, after the introduction of APP early in 2009, several sectors relied more on equity rather than debt capital. Finally, domestic productive sectors (NFCs, MFIs, OFIs, and INSs) showed some abroad bias and sent massive amounts of money out of the country. The third chapter explains the drop in total bank lending after the introduction of APP from an agent-based computational …
abstract: The main focus of this PhD thesis is to investigate the unconventional monetary policy tools introduced by the Bank of England (BoE) in its response to the recent financial crisis and to analyse its impact on the UK economy and especially the banking sector. The thesis consists of four chapters; an introductory chapter and three self-contained chapters. The first chapter mainly inspects the types and the sizes of the unconventional interventions of the monetary authorities in the UK, the US, and the EU after the collapse of Lehman Brothers in 2008. It also describes the transmission channels through which the impact of the unconventional monetary policies is delivered into the wide economy, and includes a survey of the literature of quantitative easing. The second chapter employs a flow of funds (FOFs) analysis based on Godley and Lavoie (2007) balance sheet framework using ONS sectoral data for the period between 2007 and 2011. It focuses on two distinct sub-periods (2007-2008 and 2009-2011) to assess the initial effects of mid-2007 financial crisis on the UK economy and examine the influence of BoE’s asset purchase program (APP) on the sectoral financial positions in the main financial asset categories. The analysis implicates five main results. First, APP was unsuccessful in expanding bank lending which dropped by about £208 billion in the 2009-2011 period. Second, APP might have positive effects on debt securities and equity prices and hence consumer wealth. Third, through reducing the cost of borrowing, it appears that APP induced the majority of sectors to issue more debt securities. Fourth, after the introduction of APP early in 2009, several sectors relied more on equity rather than debt capital. Finally, domestic productive sectors (NFCs, MFIs, OFIs, and INSs) showed some abroad bias and sent massive amounts of money out of the country. The third chapter explains the drop in total bank lending after the introduction of APP from an agent-based computational …
author: Fatouh, Mahmoud
language: en
keywords: HB Economic Theory, HG Finance
date published: 2015-09
date modified: 2026-07-24T02:18:05Z
provider: University of Essex
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Essex