The effectiveness of nonstandard monetary policy measures: evidence from survey data

Abstract: We assess the perception of professional forecasters regarding the effectiveness of unconventional monetary policy measures announced by the U.S. Federal Reserve after the collapse of Lehman Brothers. Using survey data collected at the individual level, we analyze the change in forecasts of Treasury and corporate bond yields around the announcement dates of nonstandard monetary policy measures. We find that professional forecasters expect bond yields to drop significantly for at least one year after the announcement of accommodative policies.

Keywords: forward guidance; large-scale asset purchases; tapering; Operation Twist; Survey of Professional Forecasters (SPF); quantitative easing;

JEL Classification: E65; E58;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Staff Reports

Publication Date: 2015-12-01

Number: 752

Pages: 23 pages