EconPapers    
Economics at your fingertips  
 

Quantitative Easing and United States Investor Portfolio Rebalancing Towards Foreign Assets

João Barroso

No 420, Working Papers Series from Central Bank of Brazil, Research Department

Abstract: We show robust evidence that quantitative easing policies by the Federal Reserve cause portfolio rebalancing by US investors towards foreign assets in emerging market economies. These effects are on top of any effects such polices might have through global or specific conditions of the recipient economies. To control for such conditions, we use capital flows from the rest of the world to the same recipient economy as a proxy variable. We gather a comprehensive dataset for Brazilian capital flows and a smaller dataset for other emerging market economies from completely independent sources. Both datasets show that more than 50% of US flows to the recipient economies in the period is accounted for by quantitative easing policies. We use the detailed datasets to break down this overall effect on the specific asset categories and sectors of the recipient economies.

Date: 2016-03
New Economics Papers: this item is included in nep-ifn, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.bcb.gov.br/content/publicacoes/WorkingPaperSeries/wps420.pdf (application/pdf)

Related works:
Chapter: Quantitative Easing and United States Investor Portfolio Rebalancing towards Foreign Assets (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcb:wpaper:420

Access Statistics for this paper

More papers in Working Papers Series from Central Bank of Brazil, Research Department
Bibliographic data for series maintained by Rodrigo Barbone Gonzalez ().

 
Page updated 2025-03-30
Handle: RePEc:bcb:wpaper:420