The large scale asset purchases had large international effects

2010

227 citations recorded by the source corpus.

The Federal Reserve's large scale asset purchases (LSAP) of agency debt, MBSs and long-term U.S. Treasuries not only reduced long-term U.S. bond yields also significantly reduced long-term foreign bond yields and the spot value of the dollar. These changes were much too large to have been generated by chance and they closely followed LSAP announcement times. These changes in U.S. and foreign bond yields are roughly consistent with a simple portfolio choice model. Likewise, the exchange rate responses to LSAP announcements are roughly consistent with a UIP-PPP based model. The success of the LSAP in reducing long-term interest rates and the value of the dollar shows that central banks are not toothless when short rates hit the zero bound.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/f20d63f416074b230dd19e7c8187c97ce14b3f13

Citations in the corpus

• The response of interest rates to U.S. and U.K. quantitative easing (2012, unknown): “37 Neely (2012) also reports strong cross-country government bond yield responses in Australia, Canada, Germany, Japan and the UK to these US announcements.”
• The effectiveness of unconventional monetary policy at the zero lower bound : a cross-country analysis (2014, unknown): “[37] Neeley, C.”
• The Financial Market Impact of Quantitative Easing in the United Kingdom (2012, unknown): “Neely (2010) looks at the wider international effects of the Federal Reserve’s asset purchases.”
• Evaluating asset-market effects of unconventional monetary policy: a multi-country review (2014, unknown): “Rosa (2012) found that UK monetary policy shocks have comparable effects on other fixed income markets to their US counterparts, but have smaller effects on equity markets, and Arai (2013) found a similar result for Japan.”
• Financial Globalisation and the Crisis (2012, unknown): “In addition to traditional spillovers from interest rate choices and fiscal choices, there are also international spillovers from the non-standard monetary instruments activated by central banks (Glick and Leduc 2012; Neely 2012).”
• On the International Spillovers of US Quantitative Easing (2018, unknown): “2 Neely (2010) and Bauer and Neely (2012) finds significant and sizeable effects of the Fed’s LSAP on sovereign yields in a small sample of other advanced economies.”
• Central bank announcements of asset purchases and the impact on global financial and commodity markets (2012, unknown): “These findings are consistent with those of Gagnon et al (2010) and Neeley (2010). In our analysis, we also show that commodity prices tended to fall, on average, on announcement days, particularly during LSAP1. In particular, indices for energy prices and precious metals tended to decline significa”
• Financial Crisis, US Unconventional Monetary Policy and International Spillovers (2015, unknown): “Relying on event studies of US asset purchases, Neely (2010) finds that US QE lowered bond rates in the other advanced economies by 20-80 basis points and depreciated the US dollar by 4-11 percent.”
• The Financial Market Effects of the Federal Reserve's Large-Scale Asset Purchases * (2012, unknown): “Neely (2010) uses the”
• The Signaling Channel for Federal Reserve Bond Purchases (2013, unknown): “(2011), Krishnamurthy and VissingJorgensen (2011), Swanson (2011), and Neely (2012).”
• Seven faces of "the peril" (2010, unknown): “20 See, for instance, Neely (2010).”