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11 results on '"Broadbent, Ben"'

1. The Brexit Vote, Productivity Growth, and Macroeconomic Adjustments in the U.K.

Author

Broadbent, Ben, Pace, Federico Di, Drechsel, Thomas, Harrison, Richard, and Tenreyro, Silvana

Subjects
BREXIT Referendum, 2016, FREE trade, POUND sterling, ECONOMIC activity, PRICES, REFERENDUM
Abstract

The U.K. economy experienced significant macroeconomic adjustments following the 2016 referendum on its withdrawal from the European Union. To understand these adjustments, this paper presents empirical facts using novel U.K. macroeconomic data and estimates a small open economy model with tradable and non-tradable sectors. We demonstrate that the referendum outcome can be interpreted as news about a future decline in productivity growth in the tradable sector. An immediate fall in the relative price of non-tradable goods induces a temporary "sweet spot" for tradable producers. Economic activity in the tradable sector expands in the short run, while the non-tradable sector contracts. Aggregate output, consumption, and investment growth decelerate. [ABSTRACT FROM AUTHOR]

Published
2024
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5. The Brexit vote, productivity growth and macroeconomic adjustments in the United Kingdom

Author

Broadbent, Ben, Di Pace, Federico, Drechsel, Thomas, Harrison, Richard, and Tenreyro, Silvana

Subjects
productivity, F47, small open economy, tradable sector, ddc:330, F17, UK economy, E13, Brexit, E32, O16
Abstract

The UK economy has experienced significant macroeconomic adjustments following the 2016 referendum on its withdrawal from the European Union. This paper develops and estimates a small open economy model with tradable and non-tradable sectors to characterise these adjustments. We demonstrate that many of the effects of the referendum result can be conceptualised as news about a future slowdown in productivity growth in the tradable sector. Simulations show that the responses of the model economy to such news are consistent with key patterns in UK data. While overall economic growth slows, an immediate permanent fall in the relative price of non-tradable output (the real exchange rate) induces a temporary 'sweet spot' for tradable producers before the slowdown in tradable sector productivity associated with Brexit occurs. Resources are reallocated towards the tradable sector, tradable output growth rises and net exports increase. These developments reverse after the productivity decline in the tradable sector materialises. The negative news about tradable sector productivity also leads to a decline in domestic interest rates relative to world interest rates and to a reduction in investment growth, while employment remains relatively stable. As a by-product of our analysis, we provide a quantitative analysis of the UK business cycle.

Published
2019

6. Central bank preferences and macroeconomic equilibrium

Author

Broadbent, Ben and Barro, Robert J.

Subjects
Monetary policy -- Analysis, Central banks -- Management, Equilibrium (Economics) -- Models, Price control -- Analysis, Inflation (Finance) -- Analysis, Banking, finance and accounting industries, Economics
Abstract

It has been concluded, using post-war US data, that authorities tend to trade off price level benefits against the cost of deviating from some exogenous inflation target. Such a notion has been determined to be identical with the concepts of Barro and Gordon (1983b). Moreover, it was established that price weight surprises account for only a third of that on inflation and that output elasticity in relation to price surprises is relatively insignificant.

Published
1997

9. Forward guidance helps us understand our economy

Author

Broadbent, Ben

Subjects
Unemployment -- Economic aspects -- Forecasts and trends, Market trend/market analysis, General interest, News, opinion and commentary
Abstract

Byline: BEN BROADBENT In August, the Monetary Policy Committee agreed not to consider raising interest rates until the unemployment rate has fallen below 7pc, and as long as inflation and [...]

Published
2013

10. Economists' view

Author

Broadbent, Ben, Chote, Robert, and Wheal, Martin

Subjects
Public finance, Banking, finance and accounting industries, Business, Business, international
Abstract

Institute For Fiscal Studies The underlying health of the public finances is much weaker than Alistair Darling thought in last year's pre-Budget report. It will take two full parliaments of [...]

Published
2009

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