[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/66533.html
   My bibliography  Save this paper

Quantitative easing of an international financial centre:how central London came so well out of the post-2007crisis

Author

Listed:
  • Gordon, Ian R.
Abstract
This paper documents and seeks to explain the remarkably positive employment trends of a central area of London in the years since the onset of the financial crisis. The volatility of this economy since the 1980s had suggested the likelihood of a sharp loss of jobs, maybe followed by a strong bounce-back, if the finance sector could overcome reputational damage from its role in the debacle of 2007-8. In fact this area proved both the most resilient in the downturn and the most dynamic in the upturn, accounting for all/most net job gains in the UK. This paper considers three types of explanation for this positive outcome - in terms of: fundamental economic strengths allowing it to keep going through generally tough times; an advantaged position in relation to elite choices about resource allocation and restructuring in the face of a general fiscal/commercial squeeze; and (less conventionally) the impact of massive support to/through the banking sector, in first mitigating impacts of the downturn for the financial centre, and then fuelling another global city boom. The last of these is argued to be key to understanding not only why central London has done so well since the crisis, but how it is still liable to be ‘the capital of boom and bust’.

Suggested Citation

  • Gordon, Ian R., 2015. "Quantitative easing of an international financial centre:how central London came so well out of the post-2007crisis," LSE Research Online Documents on Economics 66533, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:66533
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/66533/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tillmann, Peter, 2016. "Unconventional monetary policy and the spillovers to emerging markets," Journal of International Money and Finance, Elsevier, vol. 66(C), pages 136-156.
    2. Mr. Sohrab Rafiq, 2015. "The Effects of U.S. Unconventional Monetary Policy on Asia Frontier Developing Economies," IMF Working Papers 2015/018, International Monetary Fund.
    3. Marcel Fratzscher & Marco Lo Duca & Roland Straub, 2018. "On the International Spillovers of US Quantitative Easing," Economic Journal, Royal Economic Society, vol. 128(608), pages 330-377, February.
    4. Weale, Martin & Wieladek, Tomasz, 2016. "What are the macroeconomic effects of asset purchases?," Journal of Monetary Economics, Elsevier, vol. 79(C), pages 81-93.
    5. Bank of England, Bank of England, 2012. "The distributional effects of asset purchases," Bank of England Quarterly Bulletin, Bank of England, vol. 52(3), pages 254-266.
    6. Döndü ?Lkaya & Ay?Egül O?Uz, 2015. "Economic Contribution Of Tourism," Proceedings of International Academic Conferences 3105394, International Institute of Social and Economic Sciences.
    7. Emmanuel Saez, 2015. "Striking it Richer: The Evolution of Top Incomes in the United States (Updated with 2014 preliminary estimates)," Technical Notes 201506, World Inequality Lab.
    8. Qianying Chen & Andrew Filardo & Dong He & Feng Zhu, 2012. "International spillovers of central bank balance sheet policies," BIS Papers chapters, in: Bank for International Settlements (ed.), Are central bank balance sheets in Asia too large?, volume 66, pages 220-264, Bank for International Settlements.
    9. Peter Tillmann, 2014. "Unconventional Monetary Policy Shocks and the Spillovers to Emerging Markets," Working Papers 182014, Hong Kong Institute for Monetary Research.
    10. Joyce, Michael & Tong, Matthew & Woods, Robert, 2011. "The United Kingdom’s quantitative easing policy: design, operation and impact," Bank of England Quarterly Bulletin, Bank of England, vol. 51(3), pages 200-212.
    11. Kamath, Kishore & Paul, Varun, 2011. "Understanding recent developments in UK external trade," Bank of England Quarterly Bulletin, Bank of England, vol. 51(4), pages 294-304.
    12. Lewis Dijkstra & Enrique Garcilazo & Philip McCann, 2015. "The effects of the global financial crisis on European regions and cities," Journal of Economic Geography, Oxford University Press, vol. 15(5), pages 935-949.
    13. Ahmed, Shaghil & Zlate, Andrei, 2014. "Capital flows to emerging market economies: A brave new world?," Journal of International Money and Finance, Elsevier, vol. 48(PB), pages 221-248.
    14. Emmanuel Saez, 2015. "Striking it Richer: The Evolution of Top Incomes in the United States (Updated with 2013 preliminary estimates)," Technical Notes 201501, World Inequality Lab.
    15. John, Sarah & Roberts, Matt & Weeken, Olaf, 2012. "The Bank of England’s Special Liquidity Scheme," Bank of England Quarterly Bulletin, Bank of England, vol. 52(1), pages 57-66.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vassilis Monastiriotis & Ian R Gordon & Ioannis Laliotis, 2021. "Uneven geographies of economic recovery and the stickiness of individual displacement," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 14(1), pages 157-178.
    2. Neill Marshall & Stuart Dawley & Andy Pike & Jane Pollard & Mike Coombes, 2019. "An evolutionary perspective on the British banking crisis," Journal of Economic Geography, Oxford University Press, vol. 19(5), pages 1143-1167.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cenedese, Gino & Elard, Ilaf, 2021. "Unconventional monetary policy and the portfolio choice of international mutual funds," Journal of International Money and Finance, Elsevier, vol. 115(C).
    2. Kabaca, Serdar & Tuzcuoglu, Kerem, 2024. "International transmission of quantitative easing policies: Evidence from Canada," Journal of Economic Dynamics and Control, Elsevier, vol. 162(C).
    3. Claudio Borio & Anna Zabai, 2018. "Unconventional monetary policies: a re-appraisal," Chapters, in: Peter Conti-Brown & Rosa M. Lastra (ed.), Research Handbook on Central Banking, chapter 20, pages 398-444, Edward Elgar Publishing.
    4. McQuade, Peter & Falagiarda, Matteo & Tirpák, Marcel, 2015. "Spillovers from the ECB's non-standard monetary policies on non-euro area EU countries: evidence from an event-study analysis," Working Paper Series 1869, European Central Bank.
    5. Arteta,Carlos & Kose,Ayhan & Stocker,Marc & Taskin,Temel, 2016. "Negative interest rate policies : sources and implications," Policy Research Working Paper Series 7791, The World Bank.
    6. Boermans, Martijn A. & Burger, John D., 2023. "Fickle emerging market flows, stable euros, and the dollar risk factor," Journal of International Economics, Elsevier, vol. 142(C).
    7. Alessio Ciarlone & Andrea Colabella, 2016. "Spillovers of the ECB's non-standard monetary policy into CESEE economies," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 34(81), pages 175-190, November.
    8. MacDonald, Margaux, 2017. "International capital market frictions and spillovers from quantitative easing," Journal of International Money and Finance, Elsevier, vol. 70(C), pages 135-156.
    9. Bernhard, Severin & Ebner, Till, 2017. "Cross-border spillover effects of unconventional monetary policies on Swiss asset prices," Journal of International Money and Finance, Elsevier, vol. 75(C), pages 109-127.
    10. Apergis, Nicholas & Chatziantoniou, Ioannis & Cooray, Arusha, 2020. "Monetary policy and commodity markets: Unconventional versus conventional impact and the role of economic uncertainty," International Review of Financial Analysis, Elsevier, vol. 71(C).
    11. Krittika Banerjee & Ashima Goyal, 2020. "Monetary spillovers and real exchange rate misalignments in emerging markets," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 17(2), pages 452-484, October.
    12. Hsu, Feng-Jui & Chen, Sheng-Hung, 2021. "US quantitative easing and firm’s default risk: The role of Corporate Social Responsibility (CSR)," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 650-664.
    13. Anastasios Evgenidis & Apostolos Fasianos, 2021. "Unconventional Monetary Policy and Wealth Inequalities in Great Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(1), pages 115-175, February.
    14. Philip Lane, 2013. "International Capital Flows and Domestic Financial Conditions: Lessons for Emerging Asia," The Institute for International Integration Studies Discussion Paper Series iiisdp438, IIIS.
    15. Kolasa, Marcin & Wesołowski, Grzegorz, 2023. "Quantitative easing in the US and financial cycles in emerging markets," Journal of Economic Dynamics and Control, Elsevier, vol. 149(C).
    16. Sameer Khatiwada, 2017. "Quantitative Easing by the Fed and International Capital Flows," IHEID Working Papers 02-2017, Economics Section, The Graduate Institute of International Studies.
    17. Serag Masoud & Murad A. Bein & Wagdi Khalifa, 2022. "Examining the relationship between unconventional monetary policy and exchange rate movements: Empirical evidence from United States quantitative easing," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3444-3458, July.
    18. Rohit, Abhishek Kumar & Dash, Pradyumna, 2019. "Dynamics of monetary policy spillover: The role of exchange rate regimes," Economic Modelling, Elsevier, vol. 77(C), pages 276-288.
    19. Maciej Stefański, 2021. "Macroeconomic Effects of Quantitative Easing Using Mid-sized Bayesian Vector Autoregressions," KAE Working Papers 2021-068, Warsaw School of Economics, Collegium of Economic Analysis.
    20. Mélina London & Maéva Silvestrini, 2023. "US Monetary Policy Spillovers to Emerging Markets: the Trade Credit Channel," Working papers 915, Banque de France.

    More about this item

    Keywords

    spatial imbalance; regional economic fluctuation; financial centre; monetary;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • N0 - Economic History - - General
    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:66533. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.