quantitative easing

Quantitative easing and the independence of the Bank of England

This paper argues that the Bank of England’s independence in monetary policy has been compromised as a result of quantitative easing (QE) and makes practical suggestions for restoring it as far as possible, by transferring the gilts that the Bank has bought to the Debt Management Office of the Treasury and thereby shrinking the Bank’s balance sheet. The paper discusses the problems that will arise when QE is unwound and suggests that they would be less intractable if the unwinding were managed by the Debt Management Office.

Treasury Select Committee Inquiry Into The Effectiveness And Impact Of Post-2008 UK Monetary Policy

This is the third in our our new Policy Paper series, written by members of the National Institute of Economic and Social Research to specifically address a public policy issue. These may be evidence submitted to a public or parliamentary enquiry or policy research commissioned by a third party organisation. In all circumstances the NIESR authors have full editorial control of these papers. We will make all policy papers available to the public  whether they have been supported by specific funding as a matter of course. Some papers may be subsequently developed into research papers.

Coordinating Monetary, Fiscal and Financial Policy - A Submission to the Treasury Committee of the UK Parliament

UK monetary policy, following the 2008 recession, was effective at preventing the crisis from having a bigger effect than it otherwise might have done. As a result of experimenting with quantitative easing (an expansion in the Bank’s balance sheet) and qualitative easing (a change in the risk composition of its balance sheet) we learned some important lessons.

Quantitative easing and the independence of the Bank of England

This is the first in our our new Policy Paper series, written by members of the National Institute of Economic and Social Research to specifically address a public policy issue. These may be evidence submitted to a public or parliamentary enquiry or policy research commissioned by a third party organisation. In all circumstances the NIESR authors have full editorial control of these papers. We will make all policy papers available to the public  whether they have been supported by specific funding as a matter of course. Some papers may be subsequently developed into research papers.

The transmission of unconventional monetary policy in UK debt markets

Through its quantitative easing programme the Bank of England has looked to manage the supply of nominal UK government securities in order to lower interest rates. In doing so it has removed more than 25 per cent of the overall supply of those securities from the publicly accessible market. The benchmark New Keynesian model suggests this should only have an impact on interest rates insofar as it affects expectations of future policy rates, whilst alternative theoretical frameworks imply a direct effect of changes in supply onto yields.

The new art of central banking

This article outlines some of the intellectual lessons learnt by central bankers during the financial crisis. The key question is whether a broader range of policy options than simple inflation targeting has to be considered in order to limit instability. Interactions with overseas pools of savings, government debt markets and financial risk have all conspired to complicate significantly the task of monetary policymaking.