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A Flow-of-Funds Perspective on the Financial CrisisGrowing Fragilities? Balance Sheets in The Great Moderation

A Flow-of-Funds Perspective on the Financial Crisis: Growing Fragilities? Balance Sheets in The... [In the years leading up to the financial crisis the global economy enjoyed a period of remarkable, if not unprecedented, stability, at least as far as conventional macroeconomic indicators were concerned - so much so that this period earned its own label: The Great Moderation.1 The United Kingdom economy enjoyed an extended period of uninterrupted economic growth and low and stable inflation, and our major trading partners had similar experiences. According to Benati’s (2006) authoritative study for the United Kingdom: The post-1992 inflation targeting regime appears to have been characterised, to date, by the most stable macroeconomic environment in recorded UK history, with the volatilities of the business-cycle components of real GDP, national aggregates and inflation measures having been, post-1992, systematically lower than for any of the pre-1992 monetary regimes/historical periods, often markedly so, as in the case of inflation and real GDP.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

A Flow-of-Funds Perspective on the Financial CrisisGrowing Fragilities? Balance Sheets in The Great Moderation

Part of the Palgrave Studies in Economics and Banking Book Series
Editors: Winkler, Bernhard; van Riet, Ad; Bull, Peter
Barwell, Richard; Burrows, Oliver
A Flow-of-Funds Perspective on the Financial Crisis — Nov 24, 2015
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Publisher
Palgrave Macmillan UK
Copyright
© Palgrave Macmillan, a division of Macmillan Publishers Limited 2014
ISBN
978-1-349-46946-8
Pages
40 –109
DOI
10.1057/9781137353016_3
Publisher site
See Chapter on Publisher Site

Abstract

[In the years leading up to the financial crisis the global economy enjoyed a period of remarkable, if not unprecedented, stability, at least as far as conventional macroeconomic indicators were concerned - so much so that this period earned its own label: The Great Moderation.1 The United Kingdom economy enjoyed an extended period of uninterrupted economic growth and low and stable inflation, and our major trading partners had similar experiences. According to Benati’s (2006) authoritative study for the United Kingdom: The post-1992 inflation targeting regime appears to have been characterised, to date, by the most stable macroeconomic environment in recorded UK history, with the volatilities of the business-cycle components of real GDP, national aggregates and inflation measures having been, post-1992, systematically lower than for any of the pre-1992 monetary regimes/historical periods, often markedly so, as in the case of inflation and real GDP.]

Published: Nov 24, 2015

Keywords: House Price; Asset Price; Balance Sheet; Pension Fund; Private Equity

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