Could a large scale asset purchase programme have mitigated the Great Depression?

Garo Garabedian and Rebecca Stuart
Additional contact information
Garo Garabedian: Central Bank of Ireland

No 7/RT/18, Research Technical Papers from Central Bank of Ireland

Abstract: Since Friedman and Schwarz (1963), the role of the Federal Reserve during the Great Depression has been an issue of debate. In this paper, we focus on the purchases of government securities by the Federal Reserve over a four-month period in 1932. Using a Bayesian VAR model, we estimate the effect of an extension of this programme in conjunction with an interest rate cut on a range of variables capturing prices, output and macro-financial linkages. Our results indicate that this policy would have substantially shortened and reduced the impact of the Great Depression.

Keywords: Federal Reserve; Bayesian VARs; Quantitative easing; Great Depression (search for similar items in EconPapers)
JEL-codes: B16 E51 E58 (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-cba, nep-his, nep-mac and nep-mon
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.centralbank.ie/docs/default-source/pub ... stuart).pdf?sfvrsn=7 (application/pdf)

Related works:
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:cbi:wpaper:7/rt/18

Access Statistics for this paper

More papers in Research Technical Papers from Central Bank of Ireland Contact information at EDIRC.
Bibliographic data for series maintained by Fiona Farrelly ().