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An Empirical Sectoral Model of Unconventional Monetary Policy: The Impact of QE

Author

Listed:
  • James Cloyne
  • Ryland Thomas
  • Alex Tuckett
  • Samuel Wills

Abstract

type="main"> This paper describes a sectoral empirical model of money and credit in the UK that can be used for analysing unconventional monetary policies that affect banks’ balance sheets. The paper uses the model to assess the impact of QE on the UK economy focussing on the endogenous portfolio response of banks, financial companies and non-financial companies. The baseline results support the quantitative estimates found by other studies, but suggest the impact of QE is sensitive to the assumption about whether and to what extent QE affects bank lending.

Suggested Citation

  • James Cloyne & Ryland Thomas & Alex Tuckett & Samuel Wills, 2015. "An Empirical Sectoral Model of Unconventional Monetary Policy: The Impact of QE," Manchester School, University of Manchester, vol. 83, pages 51-82, September.
    • Handle: RePEc:bla:manchs:v:83:y:2015:i::p:51-82
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    File URL: http://hdl.handle.net/10.1111/manc.12098
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    2. Fabo, Brian & Jančoková, Martina & Kempf, Elisabeth & Pástor, Ľuboš, 2021. "Fifty shades of QE: Comparing findings of central bankers and academics," Journal of Monetary Economics, Elsevier, vol. 120(C), pages 1-20.
    3. David Aikman & Julia Giese & Sujit Kapadia & Michael McLeay, 2023. "Targeting Financial Stability: Macroprudential or Monetary Policy?," International Journal of Central Banking, International Journal of Central Banking, vol. 19(1), pages 159-242, March.
    4. Juan Acosta & Beatrice Cherrier & François Claveau & Clément Fontan & Aurélien Goutsmedt & Francesco Sergi, 2023. "Six Decades of Economic Research at the Bank of England," Post-Print hal-03919394, HAL.

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