N10 - General, International, or Comparative

• Quantitative Easing as a Policy Tool Under the Effective Lower Bound

  Staff Discussion Paper 2015-14 Abeer Reza, Eric Santor, Lena Suchanek

  This paper summarizes the international evidence on the performance of quantitative easing (QE) as a monetary policy tool when conventional policy rates are constrained by the effective lower bound (ELB). A large body of evidence suggests that expanding the central bank’s balance sheet through large-scale asset purchases can provide effective stimulus under the ELB.

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Central bank research, International topics, Monetary policy framework, Transmission of monetary policy JEL Code(s): E, E5, E52, E58, E6, E61, E65, N, N1, N10