Abstract
Recent literature on unconventional monetary policy has identified a number of potential channels through which QE can potentially have an impact on interest rates, which in turn may change the willingness of companies to invest and employ, individuals to spend, and banks to lend (see, for example, Joyce et al. 2011a, b; Krishnamurthy and Vissing-Jorgensen 2011). These changes are then expected to influence the level of inflation and economic growth.
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References
Joyce, M., Lasaosa, A., Stevens, I., & Tong, M. (2011a). The financial market impact of quantitative easing in the United Kingdom. International Journal of Central Banking, 7(3), 113–161.
Joyce, M., Tong, M., & Woods, R. (2011b). The United Kingdom’s quantitative easing policy: Design, operation and impact. Bank of England Quarterly Bulletin, 51(3), 200–212.
Krishnamurthy, A., & Vissing-Jorgensen, A. (2011). The effects of quantitative easing on interest rates: Channels and implications for policy. Brookings Papers on Economic Activity, 2011(Fall), 215–287.
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Hausken, K., Ncube, M. (2013). Transmission Channels for QE and Effects on Interest Rates. In: Quantitative Easing and Its Impact in the US, Japan, the UK and Europe. SpringerBriefs in Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-9646-5_2
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DOI: https://doi.org/10.1007/978-1-4614-9646-5_2
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