A survey of empirical findings on unconventional central bank policies

ORCID Identifiers

0000-0002-7700-1912

Document Type

Article

Source of Publication

Journal of Economic Studies

Publication Date

4-8-2020

Abstract

© 2020, Emerald Publishing Limited. Purpose: This paper presents an integrated overview of the empirical literature on the impact of all forms of unconventional monetary policy on macroeconomic variables and on markets. Design/methodology/approach: This survey covers the findings concerning portfolio rebalancing, signaling, liquidity, bank lending and confidence channels. Findings: The positive effect of QE announcements on stock and bond prices seems to be unified across studies. A contagion effect from US QE to other emerging markets is identified, while currency devaluation is present in most cases for the country that its central bank adopted such policies. Moreover, impacts of non-conventional practices on GDP, inflation and unemployment are examined. The studies presenting weak instead of strong positive effects on inflation are more, and these studies, also, present weak positive effects on GDP growth. Originality/value: Based on the large body of research on non-conventional action taking, this is the first survey including effects of each country that adopted quantitative easing (QE) measures and that provides results from every methodology employed in order to estimate unconventional practices' impacts.

ISSN

0144-3585

Publisher

Emerald Group Holdings Ltd.

Volume

47

Issue

7

First Page

1533

Last Page

1577

Disciplines

Business

Keywords

Empirical findings, Quantitative easing, Survey, Unconventional monetary policy

Scopus ID

85083044401

Indexed in Scopus

yes

Open Access

no

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