ZLB Flashcards
(10 cards)
Empirical evidence on impact of QE
- Carlin and Soskice (2015)
(i) US and UK data suggests long-term government bond yields reduced by up to 1% - Kapetanios et al (2012)
(i) Construct UK counter-factual
(ii) Conclude that peak impact on GDP = 1.5% and on inflation = 1.25% - Joyce et al (2011)
(i) Literature review on impact of QE in UK
(ii) Effect of QE equivalent to 1.5-3% cut in policy rate
Carlin and Soskice (2015)
IMPACT OF QE
US and UK data suggests long-term government bond yields reduced by up to 1%
Kapetanios et al (2012)
COUNTER-FACTUAL ANALYSIS OF QE
(i) Construct UK counter-factual
(ii) Conclude that peak impact on GDP = 1.5% and on inflation = 1.25%
Joyce et al (2011)
QE LITERATURE REVIEW
(i) Effect of QE equivalent to 1.5-3% cut in policy rate
QE LITERATURE REVIEW
(i) Effect of QE equivalent to 1.5-3% cut in policy rate
Joyce et al (2011)
COUNTER-FACTUAL ANALYSIS OF QE
(i) Construct UK counter-factual
(ii) Conclude that peak impact on GDP = 1.5% and on inflation = 1.25%
Kapetanios et al (2012)
IMPACT OF QE
US and UK data suggests long-term government bond yields reduced by up to 1%
Carlin and Soskice (2015)
Ball (2009)
HYSTERESIS EVIDENCE
- Long duration of unemployment benefits increases hysteresis effects
- Reason - long-term unemployed more likely to become detached from labour market if they can subsist independently of it
HYSTERESIS EVIDENCE
- Long duration of unemployment benefits increases hysteresis effects
- Reason - long-term unemployed more likely to become detached from labour market if they can subsist independently of it
Ball (2009)
Evidence for hysteresis?
Ball (2009)
- Long duration of unemployment benefits increases hysteresis effects
- Reason - long-term unemployed more likely to become detached from labour market if they can subsist independently of it
