Open AccessDOI
Quantitative Easingand U.S. Financial Asset Returns
Joanne Guo
- Vol. 2, Iss: 3, pp 76-105
TLDR
A comprehensive study of the unconventional monetary policy taken by the Federal Reserve since the financial crisis of 2008, specifically on the purchases of different assets by the Fed to change medium and long-term rates is presented in this article.Abstract:
. This paper is a comprehensive study of the unconventional monetary policy taken by the Federal Reserve since the financial crisis of 2008, specifically on the purchases of different assets by the Fed to change medium and long-term rates. Included in this study are the three rounds of quantitative easing, and the two rounds of Operation Twist. A study as such is needed in order to examine if the Fed’s purchases of these various long-term assets had any effect on the financial markets in the longer term perspective since the first announcement of the first round of purchase in November 2008. While there exists a variety of literature on the effects of quantitative easing on Treasuries and mortgage backed securities, there is no single study comprising of all the large scale asset purchases by the Fed, covering their effects on all major financial assets. This study is an attempt to fill this void in current literature on quantitative easing. Keywords. Unconventional Monetary Policy, Quantitative Easing, the Federal Reserve. JEL. E52, E58, G14.read more
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TL;DR: This paper conducted a modern event-study analysis of Operation Twist and compared its effects to those that should be expected for the recent quantitative policy announced by the Federal Reserve, dubbed ''QE2''.
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Journal ArticleDOI
The response of global equity indexes to U.S. monetary policy announcements
TL;DR: The authors analyzed the impact of U.S. monetary policy announcement on 15 foreign equity indexes in Asia, Europe, and Latin America using high-frequency data, and found a large and significant response of foreign equity index to U. S. monetary policies at short time horizons.