Segnalazione da ECB/BCE: “Does a big bazooka matter? Quantitative easing policies and exchange rates”

(This is) the latest issue (No. 76) of the ECB Research Bulletin, entitled “Does a big bazooka matter? Quantitative easing policies and exchange rates”

 

Luca Dedola (Senior Adviser, Directorate General Research, European Central Bank and CEPR), Georgios Georgiadis (Senior Economist, Directorate General International and European Relations, European Central Bank), Johannes Gräb (Team Lead, Directorate General International and European Relations, European Central Bank) and Arnaud Mehl (Adviser, Directorate General International and European Relations and CEPR) show how the relevant effects of quantitative easing can be estimated using a statistical methodology derived from theory. 

 

The results suggest that QE has large and persistent effects on the USD/EUR exchange rate, mainly through shifts in exchange rate risk and short-term interest rates between the two currencies.

 

The ECB Research Bulletin features a selection of recent work on policy-relevant topics by ECB economists. Published on a monthly basis, the articles in the Research Bulletin are intended for a general audience. The views expressed in each article are those of the authors and do not necessarily represent the views of the European Central Bank and the Eurosystem. (...)