 ConclusionKjell Hausken and Mthuli Ncube () Chapter Chapter 6 in Quantitative Easing and Its Impact in the US, Japan, the UK and Europe, 2013, pp 89-91 from Springer Abstract: Abstract In this brief, we analyze, empirically, the effects of quantitative easing on interest rates and the economy in the USA, Japan, the UK, and Europe. Using an event-study methodology, we find that the measures undertaken by the Federal Reserve and Bank of England, which focus primarily on bond purchases, are much more effective in lowering interest rates than those undertaken by the Bank of Japan and the European Central Bank, which have relied more heavily on lending to private financial institutions. Over the QE-related events, government bond yields in the USA and the UK decline cumulatively by over 100 basis points at medium and longer maturities, and more than 50 basis points at shorter maturities. In contrast, an average fall by only about 20 basis points is found for government bond yields in Japan, while mixed results are found for those in the euro area. The different impacts of QE on interest rates across economies, however, should be understood in light of their respective financial system structures. Keywords: Interest Rate; Central Bank; Euro Area; Federal Reserve; Counterfactual Analysis (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-1-4614-9646-5_6 Ordering information: This item can be ordered from DOI: 10.1007/978-1-4614-9646-5_6 Access Statistics for this chapter More chapters in SpringerBriefs in Economics from Springer |
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