Quantitative Easing: will it ever stop?
Phil Mullan on the question of QE and forward guidance.
Recording of the discussion:
An examination of the success and failure of the ongoing programmes of quantitative easing on both sides of the Atlantic.
Questions to consider
1. Why have central banks come to such prominence in recent years as economic policy makers?
2. What were the intended goals of Quantitative Easing?
3. How successful has QE been?
4. Were the fears about its negative effects overstated?
5. Is the tapering of US quantitative easing the beginning of the end of easy monetary policy?
6. What was behind the ‘forward guidance’ initiatives? Is it reasonable to assess ‘forward guidance’ as having failed?
William White, ‘Ultra Easy Monetary Policy and the Law of Unintended Consequences’, Federal Reserve Bank of Dallas, Working Paper No. 126, August 2012
Spencer Dale, ‘Limits of monetary policy’, Speech given by Bank of England Chief Economist, Trinity College, Dublin 8 September 2012
Glenn Stevens, Governor of the Reserve Bank of Australia, ‘Challenges for central banking’, Speech in Bangkok, 12 December 2012.
Athanasios Orphanides, ‘Is monetary policy overburdened?’, BIS Working Papers No 435, December 2013
Jon Hilsenrath, ‘New View Into Fed’s Response to Crisis: From Concern to Hope to Urgent Action, a Peek Inside the Central Bank During 2008’, Wall Street Journal, updated 21 February 2014
Andrew Filardo and Boris Hofmann, ‘Forward guidance at the zero lower bound’, BIS Quarterly Review, March 2014