Unconventional Monetary Policies - Recent Experiences and Prospects - Background Paper

Policy Papers, April 18, 2013

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Unconventional Monetary Policies - Recent Experiences and Prospects - Background Paper

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Bibliographic details

• Published: April 18, 2013
• Series: Policy Papers

Scope and purpose

• Provides background information to the main Board paper, “The Role and Limits of Unconventional Monetary Policy.”
• Divided into five distinct sections, each focused on topics in the main paper, with most sections relating to bond purchase programs.
• Centers on the experience of the United States Federal Reserve (Fed), the Bank of England (BOE) and the Bank of Japan (BOJ).
• Largely leaves the European Central Bank (ECB) aside given its focus on restoring the functioning of financial markets and intermediation.
• Publication date: April 18, 2013.

Section A — Effectiveness of bond purchase programs

• Focus: Whether bond purchase programs were effective at decreasing bond yields.
• Analytical aim: Identify the channels through which bond purchases affected yields.

Section B — Effects on real growth and inflation

• Focus: Whether bond purchase programs had—or can be expected to have—significant effects on real growth and inflation.
• Analytical aim: Move beyond yield effects to macroeconomic outcomes (real growth, inflation).

Section C — Spillovers to other economies

• Focus: Spillover effects of bond purchases on both advanced and emerging market economies.
• Methodology: Uses methods similar to those introduced in Section A to evaluate cross-border effects.

Section D — Inflation and public debt dynamics

• Focus: How inflation might decrease the debt burden in advanced economies.
• Context: Considers potential pressures that could fall (or be perceived to fall) on central banks.

Section E — Risks of exit

• Focus: Possible risks of exiting unconventional policies given very large central bank balance sheets.
• Analytical aim: Discuss challenges associated with normalization and balance sheet reduction.

Subject tags and themes

• Background papers
• Bonds
• Capital markets
• Central banks
• Economic growth
• European Central Bank
• Inflation
• Japan
• Monetary policy
• Spillovers
• United Kingdom
• United States

Unconventional Monetary Policies - Recent Experiences and Prospects - Background Paper (April 18, 2013).

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• Unconventional Monetary Policies--Recent Experience and Prospects--Background Paper; April 18, 2013
  • Unconventional Monetary Policies--Recent Experience and Prospects--Background Paper; April 18, 2013 (Markdown version)
  • Unconventional Monetary Policies--Recent Experience and Prospects--Background Paper; April 18, 2013 (PDF)