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dc.contributor.authorLyonnet, Victoren_US
dc.contributor.authorWerner, Richard A.en_US
dc.description.abstractThis paper investigates the effectiveness of the quantitative easing policy, as implemented by the Bank of England in March 2009. Similar policies had been previously implemented in Japan, the U.S. and the Eurozone. The effectiveness is measured by the impact of Bank of England policies (including, but not limited to QE) on nominal GDP growth - the declared goal of the policy, according to the Bank of England. Unlike the majority of the literature on the topic, the general-to-specific econometric modeling methodology (a.k.a. the Hendry or LSE methodology) is employed for this purpose. The empirical analysis indicates that QE as defined and announced in March 2009 had no apparent effect on the UK economy. Meanwhile, it is found that a policy of quantitative easing defined in the original sense of the term (Werner, 1994) is supported by empirical evidence: a stable relationship between a lending aggregate (disaggregated M4 lending, i.e. bank credit for GDP transactions) and nominal GDP is found. The findings imply that BoE policy should more directly target the growth of bank credit for GDP-transactions.en_US
dc.publisherGoethe University, Center for Financial Studies (CFS) Frankfurt a. M.en_US
dc.relation.ispartofseriesCFS Working Paper 2011/29en_US
dc.subject.keywordCentral Bankingen_US
dc.subject.keywordGeneral-to-specific Methodologyen_US
dc.subject.keywordMonetary Policyen_US
dc.subject.keywordNominal GDP Growthen_US
dc.subject.keywordQuantitative Easingen_US
dc.subject.stwGesamtwirtschaftliche Liquiditäten_US
dc.titleThe lessons from QE and other "unconventional" monetary policies: Evidence from the Bank of Englanden_US
dc.typeWorking Paperen_US
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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