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Effectiveness of Unconventional Monetary Policy at the Zero Lower Bound

  • Gert Peersman

    (Ghent University)

This paper assesses the macroeconomic e¤ects of unconventional monetary policy by estimating a panel VAR with monthly data from eight advanced economies over a sample spanning the period since the onset of the global …financial crisis. The results suggest that an exogenous increase in central bank balance sheets at the zero lower bound leads to a temporary rise in economic activity and consumer prices. The response pattern of output is thus very similar to that usually found for interest rate shocks, while the reaction of the price level is less persistent. Looking at individual country results reveals that the e¤ects of balance sheet shocks are very similar across countries.

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File URL: https://www.economicdynamics.org/meetpapers/2012/paper_400.pdf
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Paper provided by Society for Economic Dynamics in its series 2012 Meeting Papers with number 400.

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Date of creation: 2012
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Handle: RePEc:red:sed012:400
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Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

Web page: http://www.EconomicDynamics.org/
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