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The QE experience : Worth a try ?

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  • Christophe Blot

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Jérôme Creel

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Paul Hubert

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Fabien Labondance

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

The ECB has decided to implement large-scale quantitative easing (QE) measures since March 2015 until September 2016. This unconventional monetary policy has had a variety of precedents, in the Japanese, UK and US economies. These experiments have been effective a tmodifying government and corporate bond yields, mostly in the UK and US and to a lesser extent in Japan. This conclusion is not context-free. The European QE has started in a deflation era which requires more activism and cooperation from the ECB and Euro area governments than in the UK and the US when their central banks embarked in QE. The success of the European QE will also depend substantially on the depreciation of the Euro and will require clear communication by the ECB that it is prepared to accept a large depreciation at least until the inflation rate goes back to its target.

Suggested Citation

  • Christophe Blot & Jérôme Creel & Paul Hubert & Fabien Labondance, 2015. "The QE experience : Worth a try ?," SciencePo Working papers Main hal-03459951, HAL.
  • Handle: RePEc:hal:spmain:hal-03459951
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03459951
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    2. Christophe Blot & Jérôme Creel & Paul Hubert & Fabien Labondance, 2016. "The impact of ECB policies on Euro area investment," SciencePo Working papers Main hal-03459319, HAL.
    3. Christophe Blot & Jérôme Creel & Paul Hubert & Fabien Labondance & Xavier Ragot, 2015. "The redistributive effects of QE," Working Papers hal-03459824, HAL.
    4. repec:spo:wpmain:info:hdl:2441/6tr1nod75s8ica439nb3qggf7q is not listed on IDEAS
    5. Christophe Blot & Jérôme Creel & Paul Hubert, 2016. "Rooms for extension of the ECB’s quantitative easing programme," Sciences Po publications info:hdl:2441/6tr1nod75s8, Sciences Po.
    6. Christophe Blot & Jérôme Creel & Paul Hubert & Fabien Labondance & Xavier Ragot, 2015. "The redistributive effects of QE," Working Papers hal-03459824, HAL.
    7. repec:hal:spmain:info:hdl:2441/6tr1nod75s8ica439nb3qggf7q is not listed on IDEAS
    8. repec:hal:spmain:info:hdl:2441/6m0bv06f219euqrh92910rst87 is not listed on IDEAS
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    More about this item

    Keywords

    Quantitative easing (EQ) measures; Unconventional monetary policy; Depreciation of the Euro;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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