Central Bank Balance Sheet Policies and Inflation Expectations
Jan Willem End () and
Christiaan Pattipeilohy ()
Additional contact information
Christiaan Pattipeilohy: De Nederlandsche Bank
Open Economies Review, 2017, vol. 28, issue 3, 499-522
Abstract We analyse the empirical effects of credit easing and quantitative easing on inflation expectations and exchange rates. Both monetary policy strategies are summarised in measures for composition and size of the central bank balance sheet and are included in a VAR model. The results show that changes in balance sheet size had positive, albeit weak effects on inflation expectations in Japan, while the effects were negligible in the euro area. By contrast, an increasing balance sheet size is associated with reduced short-term inflation expectations in the US and UK, pointing at negative signalling effects. Shocks to balance sheet size or composition have no substantial effects on long-term inflation expectations in the euro area, US and UK. An expanding balance sheet size is associated with a depreciation of the euro, pound sterling and Japanese yen.
Keywords: Central banks and their policies; Monetary policy (search for similar items in EconPapers)
JEL-codes: E58 E52 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11079-016-9426-8 Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: Central bank balance sheet policies and inflation expectations (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:openec:v:28:y:2017:i:3:d:10.1007_s11079-016-9426-8
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2
Access Statistics for this article
Open Economies Review is currently edited by G.S. Tavlas
More articles in Open Economies Review from Springer
Bibliographic data for series maintained by Sonal Shukla ().