Swiss unconventional monetary policy: lessons for the transmission of quantitative easing
Abstract
In August 2011, the Swiss National Bank engaged in unconventional monetary policy through an unprecedented expansion of bank reserves. As these actions did not involve any outright long-term asset purchases, this unique episode allows for novel insights on the transmission mechanism of central bank balance sheet expansions to interest rates. Analysis of the response of Swiss bond yields to announcements regarding this program suggests that expansion of reserves by itself can lower long-term yields through a portfolio balance effect.Download Info
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Paper provided by Federal Reserve Bank of San Francisco in its series Working Paper Series with number 2014-18.Length: 46 pages
Date of creation: 06 Aug 2014
Date of revision:
Handle: RePEc:fip:fedfwp:2014-18
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Related research
Keywords:Find related papers by JEL classification:
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-08-09 (All new papers)
- NEP-CBA-2014-08-09 (Central Banking)
- NEP-HPE-2014-08-09 (History & Philosophy of Economics)
- NEP-MAC-2014-08-09 (Macroeconomics)
- NEP-MON-2014-08-09 (Monetary Economics)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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