Fifty shades of QE: Robust evidence

Arbeitspapier

Fabo, Jancoková, Kempf, and Pástor (2021) show that papers written by central bank researchers find quantitative easing (QE) to be more effective than papers written by academics. Weale and Wieladek (2022) show that a subset of these results lose statistical significance when OLS regressions are replaced by regressions that downweight outliers. We examine those outliers and find no reason to downweight them. Most of them represent estimates from influential central bank papers published in respectable academic journals. For example, among the five papers finding the largest peak effect of QE on output, all five are published in high-quality journals (Journal of Monetary Economics, Journal of Money, Credit and Banking, and Applied Economics Letters), and their average number of citations is well over 200. Moreover, we show that these papers have supported policy communication by the world's leading central banks and shaped the public perception of the effectiveness of QE. New evidence based on quantile regressions further supports the results in Fabo et al. (2021).

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IMFS Working Paper Series ; No. 181

Classification and Topics

• Classification: Wirtschaft ; Role of Economics; Role of Economists; Market for Economists ; Monetary Policy ; Central Banks and Their Policies ; Financial Institutions and Services: Government Policy and Regulation
• Subject: Economic research ; quantitative easing ; central bank ; career concerns

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fabo, Brian ; Jancoková, Martina ; Kempf, Elisabeth ; Pástor, éLuboés
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS)
• (where): Frankfurt a. M.
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/271055
• Last update: 10.03.2025, 11:42 AM CET