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Způsoby ukončení kvantitativního uvolňování na příkladech Japonska, Spojeného království a Spojených států amerických
[Methods of Exiting Quantitative Easing on the Examples of Japan, the UK and the USA]

Author

Listed:
  • Stanislav Hába

Abstract

The article describes both the theory and the practice of exiting from the unconventional monetary policy of quantitative easing (QE). At the theoretical level, the following issues are outlined: exit step sequence, options to decrease the amount of securities purchased, relationship between exit and interest rate hike, communication of the change and liquidity-absorbing instruments. Further, examples from Japan, the United Kingdom and the USA are introduced, especially regarding their experience with the QE exit. In detail, the monetary policy-related numbers (QE purchases, QE portfolio, central bank balance sheet, monetary base and reserves) are observed both before and after the exit announcement. The charts of these changes prove to be substantially different, mainly due to unique key features of each QE policy and diverse exit strategies.

Suggested Citation

  • Stanislav Hába, 2019. "Způsoby ukončení kvantitativního uvolňování na příkladech Japonska, Spojeného království a Spojených států amerických [Methods of Exiting Quantitative Easing on the Examples of Japan, the UK and th," Politická ekonomie, Prague University of Economics and Business, vol. 2019(1), pages 48-64.
    • Handle: RePEc:prg:jnlpol:v:2019:y:2019:i:1:id:1225:p:48-64
    DOI: 10.18267/j.polek.1225
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    References listed on IDEAS

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    1. Mr. Tao Wu, 2014. "Unconventional Monetary Policy and Long-Term Interest Rates," IMF Working Papers 2014/189, International Monetary Fund.
    2. Mr. Carlo Cottarelli & José Vinãls, 2009. "A Strategy for Renormalizing Fiscal and Monetary Policies in Advanced Economies," IMF Staff Position Notes 2009/022, International Monetary Fund.
    3. Ansgar Belke, 2014. "Exit Strategies and Their Impact on the Euro Area – A Model Based View," ROME Working Papers 201401, ROME Network.
    4. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    5. Alan S. Blinder, 2010. "Quantitative easing: entrance and exit strategies," Review, Federal Reserve Bank of St. Louis, vol. 92(Nov), pages 465-480.
    6. Carlo Cottarelli & José Vinãls, 2009. "A Strategy for Renormalizing Fiscal and Monetary Policies in Advanced Economies," IMF Staff Position Notes 2009/22, International Monetary Fund.
    7. Alan S. Blinder, 2010. "Quantitative easing: entrance and exit strategies," Review, Federal Reserve Bank of St. Louis, vol. 92(Nov), pages 465-480.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    unconventional monetary policy; quantitative easing; exit strategy; large-scale asset purchases;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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