TY  - UNPD
A1  - Lyonnet, Victor
A1  - Werner, Richard A.
T1  - The lessons from QE and other 'unconventional' monetary policies - evidence from the Bank of England
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2011,29
N2  - This paper investigates the effectiveness of the ‘quantitative easing’ policy, as implemented by the Bank of England in March 2009. Similar policies had been previously implemented in Japan, the U.S. and the Eurozone. The effectiveness is measured by the impact of Bank of England policies (including, but not limited to QE) on nominal GDP growth – the declared goal of the policy, according to the Bank of England. Unlike the majority of the literature on the topic, the general-to-specific econometric modeling methodology (a.k.a. the ‘Hendry’ or ‘LSE’ methodology) is employed for this purpose. The empirical analysis indicates that QE as defined and announced in March 2009 had no apparent effect on the UK economy. Meanwhile, it is found that a policy of ‘quantitative easing’ defined in the original sense of the term (Werner, 1994) is supported by empirical evidence: a stable relationship between a lending aggregate (disaggregated M4 lending, i.e. bank credit for GDP transactions) and nominal GDP is found. The findings imply that BoE policy should more directly target the growth of bank credit for GDP-transactions.
T3  - CFS working paper series - 2011, 29 
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/24111
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-241110
IS  - Version June 29, 2011
PB  - Goethe-Univ., House of Finance, Center for Financial Studies
CY  - Frankfurt am Main
ER  -