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Research work published by the Bank is intended to
contribute to debate, and is not necessarily a statement of Bank policy.
Fixed and floating-rate finance in the United Kingdom
and abroad
(by David Miles of the Bank's Economics Division)
analyses the different risks associated with fixed and floating-rate
debt contracts, and how the importance of those risks varies
depending on whether the borrower is a firm or a household.
It examines the current borrowing structure of the UK personal
and corporate sectors, comparing this with other countries;
and discusses the consequences for the monetary transmission
mechanism of a change in the debt structure.
The determination of M0 and M4
(by Francis Breedon and Paul Fisher of Economics Division)
summarises recent Bank research on M0 and M4. The research
confirms the leading indicator properties of M0, and in
explaining M4's behaviour, underlines the importance of
the role of wealth and of a sectoral approach. It also suggests
that there may be benefits in the simultaneous estimation
of equations for consumption and personal sector M4 holdings.
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