What are the macroeconomic effects of asset purchases?

Martin Weale, Tomasz Wieladek, 10 June 2014



After policy rates fell close to zero in response to the global financial crisis of 2008-09, the scope for further conventional monetary policy easing was exhausted. As a result, both the Bank of England and the Federal Reserve embarked on large-scale asset purchases of government and financial securities (see Figures 1 and 2).

Topics: Monetary policy
Tags: Bank of England, Federal Reserve, inflation, output, Phillips curve, quantitative easing, unconventional monetary policy

Jobs and growth are still linked (that is, Okun’s Law still holds)

Laurence Ball, Daniel Leigh, Prakash Loungani, 26 January 2013



Unemployment rates remain high in most advanced countries. Many scholars have drawn attention to an apparent decoupling of unemployment increases from output declines during the Great Recession (e.g. IMF 2010, Cazes et al. 2011).

Topics: Global crisis, Labour markets
Tags: jobless recovery, Okun, output, unemployment

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