appear to benefit as much as their international counterparts from agglomeration effects. to demonstrate, chart 22 plots ( log ) city population size against gdp per head in 563 cities in advanced economies around the world, including a number of uk cities. it also shows a line of best fit. this is upward - sloping and statistically significant, consistent with agglomeration effects. moving from a city the size of oxford ( population 535, 000 ) to one double its size such as sheffield ( around 1. 2 million ) should be department for business, energy and industrial strategy ( 2017 ). in a personal capacity, i chair the government ’ s industrial strategy council which evaluates its progress. forth ( 2019 ). all speeches are available online at www. bankofengland. co. uk / speeches expected, on average, to boost gdp per head from £27, 300 per head to £28, 100 per head, or around 2. 6 %. 51 chart 22 : city population and gdp per head sources : oecd metropolitan areas population and bank calculations. notes : gdp per capita in us $ in 2015 and log scale used for metropolitan area population. in fact, gdp per head in sheffield is around 44 % lower than in oxford. this is not just a north - south divide. income per head in sheffield is little different than in doncaster just down the road ( population 305, 000 ). data set underlying chart 22 refers to gdp per capita in us $ in 2015. numbers which convert to sterling in the text are based around average $ / £ bilateral exchange rate of 1. 34 in 2018. all speeches are available online at www. bankofengland. co. uk / speeches and it is not just sheffield. many large uk cities sit below the line : belfast, glasgow, leeds, manchester, cardiff, birmingham, as well as sheffield. agglomeration multipliers seem to be consistently smaller in a number of uk cities. why? forth ’ s work suggests transport networks are a large part of the explanation. by analysing commuting times into birmingham at different times of the day, he provide a measure of the “ effective ” working population. at peak times, the effective working population of birmingham is perhaps 50 % smaller than its measured population due to poor transport infrastructure. this helps explain why birmingham punches below its demographic weight. this is a terrific example of how high - resolution data can be used to understand local patterns of economic growth

predictable outflows ) ; ( ii ) precautionary ( to 2 for a recent assessment of vulnerabilities in financial markets see financial stability in focus : the fpc ’ s approach to assessing risks in market - based finance | bank of england. the view that there should an ample supply of reserves at all times is set out in 2016steingreenwoodhanson. pdf ( harvard. edu ) ; see also settlement liquidity and monetary policy implementation — lessons from the financial crisis - federal reserve bank of new york ( newyorkfed. org ) and how abundant are reserves? evidence from the wholesale payment system | nber. state contingent liquidity facilities for banks have been widely developed since the gfc – see for instance bank of england market operations guide | bank of england for a description of the bank ’ s toolkit. discussions about tools for non - banks are more recent – but see for instance from lender of last resort to market maker of last resort via the dash for cash : why central banks need new tools for dealing with market dysfunction | bank of england and a journey of 1000 miles begins with a single step : filling gaps in the central bank liquidity toolkit - speech by andrew hauser | bank of england. in response to the events of spring 2023, in which svb struggled to make effective use of its central bank facilities, some have re - advocated the adoption of a much more radical approach, sometimes known as the ‘ pawnbroker for all seasons ’, in which banks are required to pre - position sufficient assets at the central bank to ensure they can back all of their runnable deposits with drawing capacity in central bank liquidity facilities. see for instance more deposit insurance is no way to make banks safe - bloomberg ; we need a new approach to bank regulation | financial times ( ft. com ) ; and former boe deputy calls for radical overhaul of bank funding | financial times ( ft. com ). for an opposing view, see the pawnbroker for all seasons – an expensive and excessive solution to liquidity risk management in the banking system - macroprudential matters. 3 as discussed, for example, in ‘ till time ’ s last sand : a history of the bank of england ’, by david kynaston. bank of england meet potential outflows in a stress ) ; and ( iii ) speculative ( capturing the idea that reserves demand will also depend on the rate of return relative to other liquid assets )