Manuel Gloria and Chiara Punzo The expansion of non-bank financial institutions (NBFIs) is transforming the financial landscape and introducing fresh challenges for financial stability and oversight at the same time as creating opportunities. Using a dynamic stochastic general equilibrium (DSGE) model, we find that while NBFIs may enhance long-term welfare for households and entrepreneurs in … Continue reading Monetary policy, state-dependent bank capital requirements and the role of non-bank financial intermediaries
Monetary Policy
Eduardo Maqui, Nicholas Vause and Márcia Silva-Pereira In recent decades, the corporate bond market has grown from a relatively niche source of finance for UK corporations to a central pillar alongside bank loans. This transition raises an important question: as with bank credit conditions, have supply conditions in the corporate bond market come to significantly … Continue reading Bond financing conditions and economic activity in the UK: aggregate and firm-level evidence
Matthieu Chavaz, David Elliott and Win Monroe Large-scale provision of long-term funding to banks has become a central bank tool to support credit supply during downturns. However, scholars have worried that allowing banks to rely on public funding could create moral hazard and crowd out private funding. In a recent paper, we address these concerns … Continue reading A public-private partnership: central banks as a funding backstop
Edward Egan Headlines warn of a looming ‘jobpocalypse’, but the reality is more complex. Rather than simply causing a wave of job losses, the economic literature suggests generative AI could influence the labour market through several – potentially offsetting – channels: productivity gains, job displacement, new job creation, and compositional shifts. The balance between these … Continue reading Generative AI: degenerative for jobs?
Sarah Munson and Callum Ashworth In recent years, retail investors’ demand for UK government bonds (gilts) has increased, marking a change in the composition of market participants. The growth of retail investors, comprised of individuals managing their own portfolios, has been a global phenomenon (Foxall et al (2025)). But what’s driving this change, and what … Continue reading Retail investors’ participation in the gilt market
As a new year begins and the blog starts afresh in 2026, we wanted to take a moment to reflect on the highlights of the blog in 2025. In case you missed any of our posts the first time round, the five most viewed posts of last year were: We hope you enjoyed the blog … Continue reading Our top five posts of 2025
Bank Underground is about to take a break for the festive season. In keeping with tradition, we are pleased to present the annual Bank Underground Christmas Quiz! This year, it’s been prepared with the kind assistance of the Bank of England’s Archive team. We hope you enjoy testing your knowledge of the Bank’s history, especially … Continue reading The Bank Underground Christmas Quiz 2025
Ludovica Ambrosino, Jenny Chan and Silvana Tenreyro Macroeconomic Environment Theme The Bank of England Agenda for Research (BEAR) sets the key areas for new research at the Bank over the coming years. This post is an example of issues considered under the Macroeconomic Environment Theme which focuses on the changing inflation dynamics and unfolding structural … Continue reading Trade fragmentation and inflationary pressures
Christoph Herler and Philip Schnattinger Macroeconomic Environment Theme The Bank of England Agenda for Research (BEAR) sets the key areas for new research at the Bank over the coming years. This post is an example of issues considered under the Macroeconomic Environment Theme which focuses on the changing infaton dynamics and unfolding structural change faced … Continue reading How does lower inflation uncertainty affect households’ financial behaviour?
Arno Hantzsche and Harriet Jeanes Houses account for the largest share of total assets held by the UK household sector. Households’ spending and saving decisions depend in part on the price of these assets. What causes house prices to move can therefore have important consequences for macroeconomic policy and financial stability. Our house price model … Continue reading The keys to house price growth