E-mail alert  |  Contact  
Search:       Go  
Background  |   Sponsoring institutions  |   Editorial board   |   Advisory board   |   Associate editors
Call for papers  |   Submission guidelines  |   Editorial process
Current issue  |   Past issues  |  
September 2011 issue
List of authors
 
Laséen and Svensson
Scotti
Wolden, Roisland and Torstensen
Furlanetto
Joyce, Lasaosa, Stevens and Tong
Glindro, Subhanij, Szeto and Zhu
IJCB Home   Read the journal   Past issue
Past issues
2014
 
September
June
March
2013
 
December
September
June
March
January
2012
 
December
September
June
March
January
2011
 
December
September
June
March
2010
 
December
September
June
March
2009
 
December
September
June
March
2008
 
December
September
June
March
2007
 
December
September
June
March
2006
 
December
September
June
March
2005
 
December
September
May

The Financial Market Impact of Quantitative Easing in the United Kingdom

by Michael A. S. Joyce, Ana Lasaosa, Ibrahim Stevens, and Matthew Tong
Bank of England

Abstract

This paper investigates the impact of the Bank of Englandís quantitative easing policy on UK asset prices. Based on analysis of the reaction of financial market prices and model-based estimates, we find that asset purchases financed by the issuance of central bank reserves - which by February 2010 totalled £200 billion - may have depressed medium to longterm government bond yields by about 100 basis points, with the largest part of the impact coming through a portfolio balance effect. The wider impact on other asset prices is more difficult to disentangle from other influences: the initial impact was muted, but the overall effects were potentially much larger, though subject to considerable uncertainty.

JEL Codes: E43, E44, E52, E58.

 
Full article (PDF, 49 pages 1059 kb)