Apply the IS/LM model to analyse the expected impact on the UK economy of changes to both the Bank Rate and the Bank of England’s asset purchase decisions over the last 5 years.

Uncategorized by Geoffrey

Monetary Policy Committee voting history (XLSX) at the following web address: Monetary Policy Committee | Bank of England
Collect the following data:
a) Bank Rate between the years 2007 to 2021 for the months of December.
b) Total bond purchases between the years 2016 to 2021 for the months of
December.
1. Present both sets of data accurately in tables and/or charts.
(20 Marks)
2. Apply the IS/LM model to analyse the expected impact on the UK economy of changes to both the Bank Rate and the Bank of England’s asset purchase decisions over the last 5 years. (40 MARKS)
3. Using appropriate theory, explain how non–neutrality of money can lead to an increase in real GDP.(40 MARKS)