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Journal Article
Expectations of large-scale asset purchases
During and after the recent financial crisis, the Federal Reserve turned to a number of unconventional tools to bolster the economy. The effectiveness of one such tool, large-scale asset purchases (LSAPs)?often referred to as quantitative easing?has been hard to measure. ; Efforts to estimate LSAP impact have often relied on an "event study" approach, focusing on short time intervals around the announcements of new LSAP programs. But these studies typically ignore the fact that financial market participants sometimes expect a given LSAP announcement in advance?and such expectations can ...
Journal Article
China’s slowing housing market and GDP growth.
Journal Article
Should monetary policy monitor risk premiums in financial markets?
The authors examine whether risk premiums can predict future economic growth and whether monetary policy can influence risk premiums.
Journal Article
The global impact of U.S. monetary policy
Travis Berge and Guangye Cao assess the effects of U.S. monetary policy on asset prices in 50 countries. They find a similar reaction of asset prices to conventional and unconventional monetary policies.
Journal Article
Has the U.S. economy become less interest rate sensitive?
Jonathan Willis and Guangye Cao investigate shifts in the economy?s sensitivity to interest rates by examining how total employment responds to changes in monetary policy.
Journal Article
Global effects of U.S. monetary policy: is unconventional policy different?
U.S. monetary policy can affect asset prices both in the United States and outside of the country as investors arbitrage away price differentials between assets with similar risk/reward characteristics. Since late 2008, however, the conventional tool for monetary policy in the United States?the federal funds rate?has been near zero. As a result, the Federal Reserve has turned to unconventional monetary policies to provide additional accommodation. These unconventional policies may have altered the response of asset prices to Fed policy. Berge and Cao show that changes in U.S. monetary policy ...
Journal Article
Has the U.S. economy become less interest rate sensitive?
Jonathan L. Willis and Guangye Cao investigate shifts in the economy?s sensitivity to interest rates by examining how total employment responds to changes in monetary policy.