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Asset purchase policy at the effective lower bound for interest rates

Harrison, Richard - Bank of England - 2012

This paper studies optimal policy in a stylised New Keynesian model that is extended to incorporate imperfect substitutability between short-term and long-term bonds. This simple modification provides a channel through which asset purchases by the policy maker can affect aggregate demand....

Persistent link: https://www.econbiz.de/10008752796

Do contractionary monetary policy shocks expand shadow banking?

Nelson, Benjamin; Pinter, Gabor; Theodoridis, Konstantinos - Bank of England - 2015

Using vector autoregressive models with either constant or time-varying parameters and stochastic volatility for the United States, we find that a contractionary monetary policy shock has a persistent negative impact on the asset growth of commercial banks, but increases the asset growth of...

Persistent link: https://www.econbiz.de/10011122771

The macroeconomic effects of monetary policy: a new measure for the United Kingdom

Cloyne, James; Hürtgen, Patrick - Bank of England - 2014

This paper estimates the effects of monetary policy on the UK economy based on a new, extensive real-time forecast data set. Employing the Romer–Romer identification approach we first construct a new measure of monetary policy innovations for the UK economy. We find that a 1 percentage point...

Persistent link: https://www.econbiz.de/10011070875

The impact of QE on the UK economy – some supportive monetarist arithmetic

Bridges, Jonathan; Thomas, Ryland - Bank of England - 2012

This paper uses a simple money demand and supply framework to estimate the impact of quantitative easing (QE) on asset … prices and nominal spending. We use standard money accounting to try to establish the impact of asset purchases on broad … money holdings. We show that the initial impact of £200 billion of asset purchases on the money supply was partially offset …

Persistent link: https://www.econbiz.de/10011070876

How does credit supply respond to monetary policy and bank minimum capital requirements?

Aiyar, Shekhar; Calomiris, Charles; Wieladek, Tomasz - Bank of England - 2014

We use data on UK banks’ minimum capital requirements to study the interaction of monetary policy and capital requirement regulation. UK banks were subject to both time-varying capital requirements and changes in interest rate policy. Tightening of either capital requirements or monetary...

Persistent link: https://www.econbiz.de/10010927827

QE and the bank lending channel in the United Kingdom

Butt, Nick; Churm, Rohan; McMahon, Michael; Morotz, Arpad; … - Bank of England - 2014

We test whether quantitative easing (QE) provided a boost to bank lending in the United Kingdom, in addition to the effects on asset prices, demand and inflation focused on in most other studies. Using a data set available to researchers at the Bank, we use two alternative approaches to identify...

Persistent link: https://www.econbiz.de/10010932819