Applying a macro-finance yield curve to UK quantitative Easing

Chadha, Jagjit S.; Waters, Alex

doi:10.1016/j.jbankfin.2013.11.008

Cited by 14 publications

(7 citation statements)

References 53 publications

(71 reference statements)

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“…Specifically, Breedon et al (2012) provide evidence of QE1 lowering government bond yields by around 50 bp. In the same line, Chadha and Waters (2014) support that UK QE lowered 10-year nominal interest rates by 46 bp on average, but no sizeable impact is found on real interest rates. There is evidence that QE1 was the most effective of rounds.…”

Section: Asset Prices and Foreign Exchanges Rates As Intermediate Targets In Unconventional Monetary Policy Channelsmentioning

confidence: 85%

“…Studies where the expectations channel is important for unconventional monetary pass-through in the UK have also shown up in the literature. Among the most remarkable studies about signaling effects, is Chadha and Waters (2014). Notably, they support that QE having lowered bond yields can be mainly explained by the signaling channel at the beginning but its effect diminishes as time passes.…”

Section: Empirical Evidence On Unconventional Monetary Policy Channelsmentioning

confidence: 86%

“…Studies that base their research on macro-finance yield curves about the UK are Breedon et al (2012) and Chadha and Waters (2014). Specifically, Breedon et al (2012) provide evidence of QE1 lowering government bond yields by around 50 bp.…”

Section: Asset Prices and Foreign Exchanges Rates As Intermediate Targets In Unconventional Monetary Policy Channelsmentioning

confidence: 99%

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A survey of empirical findings on unconventional central bank policies

Papadamou

Siriopoulos

Kyriazis

2020

JES

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PurposeThis paper presents an integrated overview of the empirical literature on the impact of all forms of unconventional monetary policy on macroeconomic variables and on markets.Design/methodology/approachThis survey covers the findings concerning portfolio rebalancing, signaling, liquidity, bank lending and confidence channels.FindingsThe positive effect of QE announcements on stock and bond prices seems to be unified across studies. A contagion effect from US QE to other emerging markets is identified, while currency devaluation is present in most cases for the country that its central bank adopted such policies. Moreover, impacts of non-conventional practices on GDP, inflation and unemployment are examined. The studies presenting weak instead of strong positive effects on inflation are more, and these studies, also, present weak positive effects on GDP growth.Originality/valueBased on the large body of research on non-conventional action taking, this is the first survey including effects of each country that adopted quantitative easing (QE) measures and that provides results from every methodology employed in order to estimate unconventional practices' impacts.

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Section: Asset Prices and Foreign Exchanges Rates As Intermediate Targets In Unconventional Monetary Policy Channelsmentioning

confidence: 85%

Section: Empirical Evidence On Unconventional Monetary Policy Channelsmentioning

confidence: 86%

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A survey of empirical findings on unconventional central bank policies

Papadamou

Siriopoulos

Kyriazis

2020

JES

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“…One policy that can be said to boast of a direct impact on the financial system is monetary policy (Chadha & Waters, 2014). It is an attempt by the central bank (or a similar body) to control the supply of money in an economy (Hassan & Shahzad, 2011).…”

Section: Monetary Policymentioning

confidence: 99%

Banking Sector Competition and Financial Development in Sub-Saharan Africa

Ricky-Okine

Amankwaa

Anane³

2020

IJTMR

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The study sort to establishing a relationship between banking sector competition and financial development in subSaharan n Africa. The study further disaggregated the data used into Francophone and Anglophone countries, and these were examined separated and compared. Using an annual data on banks across 37 countries in Sub-Saharan Africa spanning the period 2001-2016 and employing the Fixed Effects estimation technique, the study revealed that there is a positive and significant relationship between financial development (FDCredit) and competition (CR3) for the full sample and the anglophone samples. The study further revealed that banking sector stability is essential for the financial development of both Anglophone and francophone countries within the sub-region. Macroeconomic variables did not have any impact on financial development generally except in francophone countries where exchange rates were found to have an impact on financial development. Bank-level variables such as ZSCORE, non-performing loans, profitability, liquidity and capitalization, on the hand had little impact in Anglophone countries on financial development compared to francophone countries. The study found that larger banks contribute positively to the development of the financial sector and banks tend to be bigger in Anglophone countries, and their banking sector is also more competitive than the francophone countries for the period used. Less emphasis should be placed on bank-level variables as these do not have significant impacts on the financial sector for Anglophone countries. Francophone countries should, however, control bank-level variables to ensure that they achieve greater financial development. Citation: Ricky-Okine, C. K., Amankwaa, T.and Anane, E.Banking Sector Competition and Financial Development in Sub-Saharan Africa,2020; 5(3): 58-85. Received: July 18, 2020Accepted: September 30, 2020

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“…A tapering of purchases and eventual reduction in debt holdings by central banks will tend to increase the supply of sovereign bonds available to investors. A rebalancing of investment portfolios away from riskier assets will affect longer-term interest rates in the wider economy – a mechanism that is likely to work gradually (see Chadha and Waters, 2014, for portfolio rebalancing effects of purchases). The reduction of monthly asset purchases by the Federal Reserve, a process that started in 2014, and the more recent process of reducing its balance sheet have so far not had adverse effects on government bond markets.…”

Section: Risks To the Forecast And Implications For Policymentioning

confidence: 99%