Transmission of Quantitative Easing: The Role of Central Bank Reserves

Jens Christensen and Signe Krogstrup

No 2014-18, Working Paper Series from Federal Reserve Bank of San Francisco

Abstract: In August 2011, the Swiss National Bank engaged in unconventional monetary policy through an unprecedented expansion of bank reserves. As these actions did not involve any outright long-term asset purchases, this unique episode allows for novel insights on the transmission mechanism of central bank balance sheet expansions to interest rates. Analysis of the response of Swiss bond yields to announcements regarding this program suggests that expansion of reserves by itself can lower long-term yields through a portfolio balance effect.

JEL-codes: E43 E52 E58 G12 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2014-08-06
New Economics Papers: this item is included in nep-cba, nep-hpe, nep-mac and nep-mon
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Transmission of Quantitative Easing: The Role of Central Bank Reserves (2019)
Working Paper: Transmission of Quantitative Easing: The Role of Central Bank Reserves (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedfwp:2014-18

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DOI: 10.24148/wp2014-18

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