Quantitative easing (QE) is a relatively new form of monetary policy whereby a central bank buys up government bonds and other financial assets to stimulate economic activity. It came to prominence in the aftermath of the Global Financial Crisis of 2007-11 when standard monetary policy tools were unavailable to central banks due to low inflation levels. Quantitative tightening (QT) is the opposite whereby central banks sell off bonds and assets to reduce the size of their balance sheets. Quantitative Easing and Tightening brings together leading academics and practitioners to assess the legacy of quantitative easing and look at where new quantitative tightening measures may take us. It examines three of the most important actors in the QE/QT story: the Bank of England, the European Central Bank and the US Federal Reserve to provide an overview of the effectiveness, governance, and fiscal costs of quantitative easing and tightening.
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Provides an overview of quantitative easing and quantitative tightening, focusing on effectiveness, fiscal costs and governance.
Part I. The Economic Impact of QE and QT:
1. QE at the bank of England
Busetto, Chavaz, Froemel, Joyce, Kaminska and Worlidge;
2. US experience of
QE and QT Boyarchenko and Shachar;
3. Measuring and modelling the effects of
QE and QT in VAR models Wieladek;
4. The Old Lady's QE story: the evolving
view of the transmission mechanism of QE at the BoE Barwell; Part II.
Quantitative Tightening:
5. The effects of quantitative tightening on
financial markets: a comparison with quantitative easing Lloyd, Ostry and
Busetto;
6. Quantitative tightening: how fast and how far Young; Part III.
Fiscal and Governance Aspects of QE:
7. Fiscal channels of QE and QT in the
United Kingdom Meaning;
8. The Parable of the fiscal-military state: the
Napoleonic bank of England Chadha;
9. Post-crisis monetary policy in Britain
and its governance Allen.
Francis Breedon is a Professor of Economics in the School of Economics and Finance at Queen Mary University London.
