The Monetary Policy Committee's recent decision to expand the money supply through large-scale asset purchases (or ‘quantitative easing') shifted the focus of monetary policy towards the quantity of money as well as the price of money. With Bank Rate close to zero, asset purchases should...

In response to the financial crisis in 2008, the Federal Reserve implemented all possible monetary policies without significant success. The result was the presentation of the quantitative easing (QE) policy, which is a monetary policy where the Federal Reserve purchases mid-to long-term bonds...

Is Quantitative Easing (QE) an effective substitute for conventional monetary policy? We study this question using a heterogeneous-agents model with nominal rigidities, as well as liquid and partially liquid wealth. The direct effect of QE is determined by the difference in marginal propensities...

Many misunderstandings are still circulating about the actual operational aspects and impacts of Quantitative Easing, also known as Permanent Open Market Operations or Large Scale Asset Purchases. This brief primer will provide a series of basic understandings that give the reader better...

We estimate a macro-finance yield curve model for both the nominal and real forward curve for the UK from 1993 to 2008. Our model is able to accommodate a number of key macroeconomic variables and allows us to estimate the instantaneous response of the yield curve and so gauge the impact of...