The Financial Market Impact of UK Quantitative Easing

Francis Breedon, Jagjit Chadha and Alex Waters ()

Studies in Economics from School of Economics, University of Kent

Abstract: After outlining some of the monetary developments associated with Quantitative Easing (QE), we measure the impact of the UK's initial 2009-10 QE Programme on bonds and other assets. First, we use a macro-finance yield curve both to create a counterfactual path for bond yields and to estimate the impact of QE directly. Second, we analyse the impact of individual QE operations on a range of asset prices. We find that QE significantly lowered government bond yields through the portfolio balance channel by around 50 or so basis points. We also uncover significant effects of individual operations but limited pass through to other assets.

Keywords: Term Structure of Interest Rates; Monetary Policy; Quantitative Easing (search for similar items in EconPapers)
JEL-codes: E43 E44 E47 E58 (search for similar items in EconPapers)
Date: 2012-06
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

Downloads: (external link)
https://www.kent.ac.uk/economics/repec/1211.pdf (application/pdf)

Related works:
Chapter: The financial market impact of UK quantitative easing (2012)
Journal Article: The financial market impact of UK quantitative easing (2012)
Working Paper: The Financial Market Impact of UK Quantitative Easing (2012)
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:ukc:ukcedp:1211

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Studies in Economics from School of Economics, University of Kent School of Economics, University of Kent, Canterbury, Kent, CT2 7FS.
Bibliographic data for series maintained by Dr Anirban Mitra ().