Economics Stack Exchange Archive

Has there been any studies that examine the effects that the first 2 rounds of Quantitative Easing have had?

• posted by: Chad on 2011-10-28
• tagged: money-supply, monetary-policy, usa
• score: 4

There has been quite a bit of speculation as to what effect the Quantitative Easing would have. Have there been any studies that examine the actual results?

Answer 403

• posted by: Patrick Beardmore on 2011-10-31
• score: 1

Here is a very recent powerpoint from Berkley on this topic, with a mix of empirical and quantitative approaches.

In The economic impact of QE: Lessons from the UK, Joyce. Tong & Woods studied the impacts from the first round of Quantitative Easing in the UK.

They state that:

there were significant falls in medium- to long-term gilt yields after important QE announcements, summing to just under 100 basis points

and their modelled estimates are of an increase in GDP of 1.5%-2%, and an increase to the CPI of 0.75-1.5 percentage points.

Answer 1094

• posted by: pait on 2012-03-11
• score: 0

Paul Krugman says that quantitative easing was a disappointment, because it did not directly address the fact that the US economy has suffered from low demand. Links in his blog post below:

http://krugman.blogs.nytimes.com/2011/08/26/academic-debate-real-consequences-wonkish/

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