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How stimulatory are large-scale asset purchases?


  • Vasco Cúrdia
  • Andrea Ferrero


The Federal Reserve’s large-scale purchases of long-term Treasury securities most likely provided a moderate boost to economic growth and inflation. Importantly, the effects appear to depend greatly on the Fed’s guidance that short-term interest rates would remain low for an extended period. Indeed, estimates from a macroeconomic model suggest that such interest rate forward guidance probably has greater effects than signals about the amount of assets purchased.

Suggested Citation

  • Vasco Cúrdia & Andrea Ferrero, 2013. "How stimulatory are large-scale asset purchases?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue aug12.
  • Handle: RePEc:fip:fedfel:y:2013:i:aug12:n:2013-22

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    References listed on IDEAS

    1. Hess Chung & Jean‐Philippe Laforte & David Reifschneider & John C. Williams, 2012. "Have We Underestimated the Likelihood and Severity of Zero Lower Bound Events?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44, pages 47-82, February.
    2. Michael D. Bauer & Glenn D. Rudebusch, 2014. "The Signaling Channel for Federal Reserve Bond Purchases," International Journal of Central Banking, International Journal of Central Banking, vol. 10(3), pages 233-289, September.
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    Cited by:

    1. repec:bla:jecsur:v:31:y:2017:i:3:p:678-711 is not listed on IDEAS
    2. Jan Willem End & Christiaan Pattipeilohy, 2017. "Central Bank Balance Sheet Policies and Inflation Expectations," Open Economies Review, Springer, vol. 28(3), pages 499-522, July.
    3. Yýlmaz Akyüz, 2014. "Crisis Mismanagement in The United States And Europe: Impact On Developing Countries And Longer-Term Consequences," Working Papers 2014/3, Turkish Economic Association.
    4. Richhild Moessner & David-Jan Jansen & Jakob de Haan, 2017. "Communication About Future Policy Rates In Theory And Practice: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 678-711, July.
    5. Burns, Andrew & Kida, Mizuho & Lim, Jamus Jerome & Mohapatra, Sanket & Stocker, Marc, 2014. "Unconventional monetary policy normalization in high-income countries : implications for emerging market capital flows and crisis risks," Policy Research Working Paper Series 6830, The World Bank.
    6. Lim, Jamus Jerome & Mohapatra, Sanket, 2016. "Quantitative easing and the post-crisis surge in financial flows to developing countries," Journal of International Money and Finance, Elsevier, vol. 68(C), pages 331-357.
    7. World Bank, 2014. "Global Economic Prospects, Volume 8, January 2014 : Coping with Policy Normalization in High-Income Countries," World Bank Publications, The World Bank, number 16572.
    8. Christiaan Pattipeilohy, 2016. "A comparative analysis of developments in central bank balance sheet composition," DNB Working Papers 510, Netherlands Central Bank, Research Department.
    9. van Holle, Frederiek, 2017. "Essays in empirical finance and monetary policy," Other publications TiSEM 30d11a4b-7bc9-4c81-ad24-5, Tilburg University, School of Economics and Management.

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    Open market operations ; Interest rates;


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