Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of San Francisco
FRBSF Economic Letter
Estimating the macroeconomic effects of the Fed’s asset purchases
Hess Chung
Jean-Philippe Laforte
David L. Reifschneider
John C. Williams
Abstract

An analysis shows that the Federal Reserve’s large-scale asset purchases have been effective at reducing the economic costs of the zero lower bound on interest rates. Model simulations indicate that, by 2012, the past and projected expansion of the Fed’s securities holdings since late 2008 will lower the unemployment rate by 1½ percentage points relative to what it would have been absent the purchases. The asset purchases also have probably prevented the U.S. economy from falling into deflation.


Download Full text
Download Full text
Cite this item
Hess Chung & Jean-Philippe Laforte & David L. Reifschneider & John C. Williams, "Estimating the macroeconomic effects of the Fed’s asset purchases" , Federal Reserve Bank of San Francisco, FRBSF Economic Letter, number 03, 2011.
More from this series
JEL Classification:
Subject headings:
Keywords: Monetary policy ; Government securities ; Interest rates ; Macroeconomics - Econometric models
For corrections, contact Federal Reserve Bank of San Francisco Research Library ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal