The financial market impact of UK quantitative easing

Arbeitspapier

After outlining some of the monetary developments associated with Quantitative Easing (QE), we measure the impact of the UK's initial 2009-10 QE Programme on bonds and other assets. First, we use a macro-finance yield curve both to create a counterfactual path for bond yields and to estimate the impact of QE directly. Second, we analyse the impact of individual QE operations on a range of asset prices. We find that QE significantly lowered government bond yields through the portfolio balance channel - by around 50 or so basis points. We also uncover significant effects of individual operations but limited pass through to other assets.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 696

Classification and Topics

• Classification: Wirtschaft ; Interest Rates: Determination, Term Structure, and Effects ; Financial Markets and the Macroeconomy ; Money and Interest Rates: Forecasting and Simulation: Models and Applications ; Central Banks and Their Policies
• Subject: Term structure of interest rates ; Monetary policy ; Quantitative Easing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Breedon, Francis ; Chadha, Jagjit S. ; Water, Alex
• Event: Veröffentlichung
• (who): Queen Mary University of London, School of Economics and Finance
• (where): London
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/97352
• Last update: 10.03.2025, 11:45 AM CET