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The Financial Market Impact of Quantitative Easing in the United Kingdom

by International Journal of Central Banking , Bank of England , Michael A. S. Joyce
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Current price ₹1,503.00
Original price ₹1,749.00
Original price ₹1,749.00
Original price ₹1,749.00
(-14%)
₹1,503.00
Current price ₹1,503.00

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Book cover type: Paperback
  • ISBN13: 9781249455042
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Bibliogov
  • Publisher Imprint: Bibliogov
  • Publication Date:
  • Pages: 52
  • Original Price: GBP 13.99
  • Language: English
  • Edition: N/A
  • Item Weight: 109 grams
  • BISAC Subject(s): General

This paper investigates the impact of the Bank of England's quantitative easing policy on UK asset prices. Based on analysis of the reaction of financial market prices and model-based estimates, we find that asset purchases financed by the issuance of central bank reserves - which by February 2010 totalled 200 billion - may have depressed medium to longterm government bond yields by about 100 basis points, with the largest part of the impact coming through a portfolio balance effect. The wider impact on other asset prices is more difficult to disentangle from other influences: the initial impact was muted, but the overall effects were potentially much larger, though subject to considerable uncertainty.

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