TY  - UNPD
A1  - Voutsinas, Konstantinos
A1  - Werner, Richard A.
T1  - New evidence on the effectiveness of 'Quantitative Easing' in Japan
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2011,30
N2  - Central banks have recently introduced new policy initiatives, including a policy called ‘Quantitative Easing’ (QE). Since it has been argued by the Bank of England that “Standard economic models are of limited use in these unusual circumstances, and the empirical evidence is extremely limited” (Bank of England, 2009b), we have taken an entirely empirical approach and have focused on the QE-experience, on which substantial data is available, namely that of Japan (2001-2006). Recent literature on the effectiveness of QE has neglected any reference to final policy goals. In this paper, we adopt the view that ultimately effectiveness will be measured by whether it will be able to “boost spending” (Bank of England, 2009b) and “will ultimately be judged by their impact on the wider macroeconomy” (Bank of England, 2010). In line with a widely held view among leading macroeconomists from various persuasions, while attempting to stay agnostic and open-minded on the distribution of demand changes between real output and inflation, we have thus identified nominal GDP growth as the key final policy goal of monetary policy. The empirical research finds that the policy conducted by the Bank of Japan between 2001 and 2006 makes little empirical difference while an alternative policy targeting credit creation (the original definition of QE) would likely have been more successful.
T3  - CFS working paper series - 2011, 30 
KW  - Central Banking
KW  - General-to-specific Methodology
KW  - Monetary Policy
KW  - Nominal GDP Growth
KW  - Quantitative Easing
Y1  - 2011
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/24114
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-241143
IS  - Version October 2011
PB  - Goethe-Univ., House of Finance, Center for Financial Studies
CY  - Frankfurt am Main
ER  -