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The external constraint in the UK

Bean, Charles ORCID: 0000-0002-6524-8280 (1990) The external constraint in the UK. CEP Discussion Papers (CEPDP0010). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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This paper begins by reviewing the impact of external considerations on British economic policy making over the last hundred and fifty years. We then go on to ask whether, in addition to the usual intertemporal solvency requirement, there is a period-by-period external constraint in the form of a rising virtual supply price of foreign borrowing. We estimate a version of consumption risk-adjusted interest parity that allows for such a feature, but find little evidence that it is important. Finally, we discuss the recent evolution of the British current account and argue that the authorities are right to take a sanguine view.

Item Type: Monograph (Discussion Paper)
Official URL:
Additional Information: © 1990 The Author
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HC Economic History and Conditions
Date Deposited: 22 Aug 2008 09:28
Last Modified: 16 May 2024 11:15

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