Monetary Policy Responses to the 2008 Financial Crisis: Quantitative Easing Evidence in the United Kingdom
19 Pages Posted: 3 Apr 2017
Date Written: 2017
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: Suggested Citation