What Can the Money Data Tell Us About the Impact of QE?

11 Pages Posted: 4 Jan 2013

See all articles by Nicholas Butt

Nicholas Butt

Bank of England

Silvia Domit

Bank of England - Monetary Analysis

Michael McLeay

Bank of England - Monetary Assessment and Strategy Division

Ryland Thomas

Bank of England - Monetary Analysis

Lewis Kirkham

Bank of England

Date Written: December 12, 2012

Abstract

This article reviews the main influences on broad money growth since the onset of the global crisis, focusing on the impact of the Monetary Policy Committee’s asset purchase programme (QE). The underlying weakness in money growth is likely to have reflected a combination of reduced nominal demand and a restructuring of banks’ balance sheets. QE has played a key role in offsetting some of this weakness and in a way that has not depended on an increase in bank lending. The first two rounds of QE seem to have had a similar proportionate impact on the money supply, but there is some evidence that the transmission mechanism of QE may have been different over the two episodes.

Suggested Citation

Butt, Nicholas and Domit, Silvia and McLeay, Michael and Thomas, Ryland and Kirkham, Lewis, What Can the Money Data Tell Us About the Impact of QE? (December 12, 2012). Bank of England Quarterly Bulletin 2012 Q4. Available at SSRN: https://ssrn.com/abstract=2195941

Nicholas Butt (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Silvia Domit

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Michael McLeay

Bank of England - Monetary Assessment and Strategy Division ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Ryland Thomas

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Lewis Kirkham

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
130
Abstract Views
634
rank
219,589
PlumX Metrics