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The Effectiveness of Nonstandard Monetary Policy Measures: Evidence from Survey Data

23 Pages Posted: 10 Dec 2015 Last revised: 30 Aug 2017

Domenico Giannone

Federal Reserve Banks - Federal Reserve Bank of New York; Centre for Economic Policy Research (CEPR)

Carlo Altavilla

European Central Bank (ECB)

Date Written: 2015-12-01

Abstract

We assess the perception of professional forecasters regarding the effectiveness of unconventional monetary policy measures announced by the U.S. Federal Reserve after the collapse of Lehman Brothers. Using survey data collected at the individual level, we analyze the change in forecasts of Treasury and corporate bond yields around the announcement dates of nonstandard monetary policy measures. We find that professional forecasters expect bond yields to drop significantly for at least one year after the announcement of accommodative policies.

Keywords: Survey of Professional Forecasters, large-scale asset purchases, quantitative easing, Operation Twist, forward guidance, tapering

JEL Classification: E58, E65

Suggested Citation

Giannone, Domenico and Altavilla, Carlo, The Effectiveness of Nonstandard Monetary Policy Measures: Evidence from Survey Data (2015-12-01). FRB of NY Staff Report No. 752. Available at SSRN: https://ssrn.com/abstract=2701191

Domenico Giannone

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

Carlo Altavilla (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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