Fifty Shades of QE: Comparing Findings of Central Bankers and Academics

40 Pages Posted: 16 Sep 2020 Last revised: 5 Feb 2021

See all articles by Brian Fabo

Brian Fabo

National Bank of Slovakia

Martina Jancokova

European Central Bank

Elisabeth Kempf

University of Chicago - Booth School of Business; Centre for Economic Policy Research (CEPR)

Lubos Pastor

University of Chicago - Booth School of Business; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Multiple version iconThere are 5 versions of this paper

Date Written: February 4, 2021

Abstract

We compare the findings of central bank researchers and academic economists regarding the macroeconomic effects of quantitative easing (QE). We find that central bank papers find QE to be more effective than academic papers do. Central bank papers report larger effects of QE on output and inflation. They also report QE effects on output that are more significant, both statistically and economically, and they use more positive language in the abstract. Central bank researchers who report larger QE effects on output experience more favorable career outcomes. A survey of central banks reveals substantial involvement of bank management in research production.

Keywords: economic research, quantitative easing, QE, central bank, career concerns

JEL Classification: A11, E52, E58, G28

Suggested Citation

Fabo, Brian and Jancokova, Martina and Kempf, Elisabeth and Pastor, Lubos, Fifty Shades of QE: Comparing Findings of Central Bankers and Academics (February 4, 2021). University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2020-128, Available at SSRN: https://ssrn.com/abstract=3693344 or http://dx.doi.org/10.2139/ssrn.3693344

Brian Fabo

National Bank of Slovakia ( email )

Imricha Karvasa 1
813 25 Bratislava
Slovakia

Martina Jancokova

European Central Bank ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Elisabeth Kempf

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

HOME PAGE: http://www.chicagobooth.edu/faculty/directory/k/elisabeth-kempf

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Lubos Pastor (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-834-4080 (Phone)
773-702-0458 (Fax)

HOME PAGE: http://www.ChicagoGSB.edu/fac/lubos.pastor/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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