The Operation and Regulation of Financial Markets

1. Front Matter

   Pages i-xvii

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2. Regulation and Structural Change in Financial Markets

   1. Front Matter

      Pages 1-1

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   2. UK Banking Supervision and the Johnson Matthey Affair

      • Maximilian J. B. Hall

      Pages 3-30

   3. Structural Changes in the British Capital Markets

      • Charles Goodhart

      Pages 31-53

   4. Personal Financial Services in the United States: A Transatlantic Perspective

      • Mervyn Lewis

      Pages 54-77

   5. The Variability of Monetary Growth in France and the UK, 1970–84

      • David Cobham, Jean-Marin Serre

      Pages 78-100

3. Modelling Money and Banking

   1. Front Matter

      Pages 101-101

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   2. Buffer-Stock Money: An Appraisal

      • Keith Cuthbertson, Mark P. Taylor

      Pages 103-124

   3. Disequilibrium Money: Some Further Results with a Monetary Model of the UK

      • James Davidson

      Pages 125-149

   4. In What Sense Do Compulsory Ratios Reduce the Volume of Deposits?

      • Anthony S. Courakis

      Pages 150-186

4. Modelling Financial Markets

   1. Front Matter

      Pages 187-187

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   2. Rational Forecasts in Models of the Term Structure of Interest Rates

      • Richard T. Baillie, Patrick C. McMahon

      Pages 189-206

   3. Did High-Powered Money Rule the Roost? Monetary Policy, Private Behaviour and the Structure of Interest Rates in the United Kingdom: 1972–77

      • Christopher J. Green

      Pages 207-230

   4. Variability in Some Major UK Asset Markets since the Mid-1960s: An Application of the ARCH Model

      • Rodney Dickens

      Pages 231-270

Financial markets in Britain, and elsewhere, are in the midst of a process of fundamental structural change. The resulting shifts in the behaviour of such markets will require the authorities, in turn, to revise their regulatory and control methods. This book incorporates a series of articles by leading British monetary economists to examine both the implications of such structural changes and also to model the current working of these markets. Within this unified framework, the articles range from descriptive accounts of recent developments in bank supervision and in the structure of the London capital markets to more formal econometric studies of the inter-relationships between money and other economic variables, and of the workings of financial markets. This provides a showcase to exhibit the most up-to-date research of leading British monetary economists.

• econometrics
• financial markets
• growth
• interest rates
• methods
• monetary policy
• money

• London School of Economics and Political Science, UK

  Charles Goodhart

• Queen Mary College, University of London, UK

  David Currie

• Loughborough University, UK

  David T. Llewellyn

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