We develop a dynamic general equilibrium model to analyze the effects of central bank purchases of government bonds by … do they mitigate, and how large are these effects? We show that by purchasing government bonds, central banks induce …

Open market operations play a key role in allocating central bank funds to the banking system and thereby to steer … short-term interest rates in line with the stance of monetary policy. Many central banks apply so-called "fixed rate tender …" auctions in their open market operations. This note presents, on the basis of a survey of central bank experience, a model of …