Monetary Versus Macroprudential Policies: Causal Impacts of Interest Rates and Credit Controls in the Era of the UK Radcliffe Report

The views expressed in this paper are those of the authors and not necessarily those of the Bank of England or the National Bureau of Economic Research. The authors wish to thank – without implicating – Thilo Albers, Saleem Bahaj, Michael Bordo, Forrest Capie, Matthieu Chavaz, James Cloyne, Angus Foulis, Julia Giese, Charles Goodhart, Robert Hetzel, Ethan Ilzetzki, Òscar Jordà, George Kapetanios, Norbert Metiu, Paul Mizen, Duncan Needham, Edward Nelson, José-Luis Peydró, Jonathan Pinder, Ricardo Reis, Gary Richardson, Albrecht Ritschl, Joan Rosés, Peter Scott, Lord Skidelsky, Peter Sinclair, Ryland Thomas, Matthew Waldron, Eugene White, and Garry Young for helpful conversations, and Jiayi Cheng, Jiawei Fan, Casey Murphy, Consgor Osvay, Henrik Pedersen, Jenny Spyridi, and Yizhong Zhang for their excellent research assistance, and the archivists at the Bank of England, Barclays Bank, HSBC, the Royal Bank of Scotland and the National Archives. We have benefited from comments of participants at presentations at UC Davis, UC Berkeley, the NBER Summer Institute, the Cliometric Society Annual Conference, the American Economic Association Annual Meetings, the European Economic Association Annual Congress, the Royal Economic Society Annual Conference, the Federal Reserve conference on economic and financial history, the Oxford-Indiana Macroeconomic Policy Conference, the 6th EurHiStock Workshop, the CEPR Financial Markets Symposium, the MNB-CEPR-ESRB Macroeconomic Policy Research Workshop, the Central Bank of Ireland Economic History Workshop, the INET Young Scholars’ Initiative economic history conference, the London School of Economics, the University of Cambridge, the University of Oxford, the University of Bonn, the University of Reading, Rutgers University, Warwick University, the Bank for International Settlements and the Bank of England.

• June 23, 2016
• November 16, 2018