Work

What are the macroeconomic effects of asset purchases?

Year: 2016

Type: article

Abstract: The impact of announcements of large-scale purchases of government bonds on real GDP and the CPI in the United Kingdom and the United States is explored with a Bayesian VAR, estimated on monthly data from 2009M3 to 2014M5. Four different identification schemes are used, all leaving the reactions of GDP and CPI unrestricted, and the transmission channels of the policy are examined. An asset purchase announcement of 1% of GDP leads to a statistically significant rise of 0.58% (0.25%) and 0.62% (0.32%) rise in real GDP and CPI for the US (UK). The transmission channels differ in the two countries.

Source: Journal of Monetary Economics

DOI: 10.1016/j.jmoneco.2016.03.010

Authors: Martin Weale, Tomasz Wieladek

Institutions: Queen Mary University of London, Bank of England, National Institute of Economic and Social Research, Barclays (United Kingdom), Centre for Economic Policy Research

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $4,660

OpenAlex ID: W3121193908

FWCI: 56.47

Cites: 51

Cited by: 277

Related to: 10