Monetary Policy Responses to the 2008 Financial Crisis: Quantitative Easing Evidence in the United Kingdom

19 Pages Posted: 3 Apr 2017

See all articles by Ali Ashraf

Ali Ashraf

Frostburg State University

Walter J. Lane

University of New Orleans - College of Business Administration - Department of Economics and Finance

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Date Written: 2017

Abstract

This paper analyzes responses to monetary policy tools during the United Kingdom’s Quantitative Easing regime from March 06, 2009 to June 02, 2010 on a set of target variables: market index, foreign exchange index, investment grade and non-investment grade bond yield, and spots and forwards of different maturities for OIS, LIBOR and Nominal Government Yield. Results suggest that conventional monetary policy tools other than a zero-bound official bank rate may still be effective. Inclusion of one unconventional tool, the increase in government gilt holdings, has significant impact on most of the target variables.

Keywords: General Financial Markets, Financial Institutions and Services, Bond Interest Rates

JEL Classification: G100, G280, G120

Suggested Citation

Ashraf, Ali and Lane, Walter J. and Hassan, M. Kabir, Monetary Policy Responses to the 2008 Financial Crisis: Quantitative Easing Evidence in the United Kingdom (2017). Available at SSRN: https://ssrn.com/abstract=2944499 or http://dx.doi.org/10.2139/ssrn.2944499

Ali Ashraf (Contact Author)

Frostburg State University ( email )

Frostburg, MD 21532
United States

HOME PAGE: http://www.frostburg.edu/dept/mktfin/department-faculty/dr-ali-ashraf/

Walter J. Lane

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

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