Quantitative Easing : The Great Central Bank Experiment.

Cover -- Half Title -- Series Information -- Title Page -- Copyright Page -- Contents -- Preface -- Abbreviation -- Foreword -- 1. Monetary policy-making since the end of Bretton Woods -- A new framework for monetary policy: central bank independence and inflation targeting -- Despite the greater focus on inflation, central banks had not become "inflation nutters" -- The monetary policy decision-making process and central bank communication -- The implementation of monetary policy changes -- How the transmission mechanism of monetary policy works -- Gauging the stance of monetary policy -- 2. Key monetary policy trends and events in the decades before the Great Financial Crisis -- Sharply falling interest rates during the Great Moderation -- The onset of the ZLB in Japan amid its "lost decade" -- The bursting of the IT bubble fuelled record low US rates -- The Bank of Japan enacts "drastic" measures with QE -- 3. The Great Financial Crisis and the onset of quantitative easing -- Massive financial panic after the collapse of Lehman Brothers -- Central bank interest rates hit record lows -- The US and UK begin large-scale QE -- The euro area did not initially enact QE -- Draghi's strong words end the euro area crisis -- The Bank of Japan's response to the financial crisis was modest -- QE ends in the US and UK, but then restarts as recoveries slow -- Japan unleashes a huge new QE programme amid "Abenomics" -- Europe finally begins QE -- 4. How quantitative easing works -- Main channels through which QE works -- US and UK QE differed from the initial Japanese experiment -- Other channels in which QE is beneficial -- QE may have some differing impacts across countries -- QE has increasingly involved the purchase of riskier assets -- QE is likely to have diminishing returns over time -- 5. Measuring the effectiveness and impact of quantitative easing.

Methods of estimating QE's impact -- QE1 helped the US and UK economies avoid a worst-case scenario and begin to recover -- Some observers were sceptical about the impact of QE1 -- Additional rounds of US and UK QE eased financial conditions further, with signs of diminishing returns -- Japan's new QE experiment has had some success, but is struggling to generate sufficient inflation -- ECB's OMT programme a major success, QE not quite so much -- 6. International spillovers of quantitative easing -- Large, but not necessarily excessive, capital flows to emerging markets during the latter rounds of QE -- The "taper tantrum" increased concerns about the normalization of Fed policy, but it ultimately proceeded relatively smoothly -- The verdict on international spillovers from US QE -- EM policy-makers called for greater coordination and consideration of external spillovers -- 7. Criticisms and negative externalities of quantitative easing -- Some fears of an inflation surge -- Inflation has remained below targets -- Financial stability risks? -- Misallocation of resources and weakened productivity -- Rising wealth inequality and large distributional issues -- Populism -- Threats to central bank independence -- Greater cooperation needed at the lower bound -- More experimental and riskier policies -- 8. Exiting quantitative easing and policies for the next slowdown -- The US Federal Reserve as first-mover -- Policies for the next global slowdown -- Conclusion -- Notes -- References -- Index.

A thorough and perspicacious analysis of auantitative easing (QE), what has become a recovery method of last resort, that will be essential reading for anyone wanting to understand central banking's role in the national economy.

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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2024. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.