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This paper constructs a survey‐based measure capturing the evolution of market's expectations of the Federal Reserve's Large‐Scale Asset Purchases (LSAP) program during 2008–18, and examines the transmission mechanism of unconventional monetary policy. Estimation results suggest that both signaling and portfolio balance channels of the LSAP were important in lowering long‐term interest rates; Moreover, the Federal Reserve's forward guidance policy had led to a gradual extension of market's projections of the duration of the LSAP, making its effects more persistent. Model estimation also explains the 2013 taper tantrum well, and suggests that the LSAP's effects might have declined during QE III. [ABSTRACT FROM AUTHOR]

This paper studies how macroeconomic news affected the spreads of Italian sovereign bonds before and during the quantitative easing by the European Central Bank. Daily changes in the bond spreads are regressed on macroeconomic news shocks, where the news shocks are computed as the difference between the published data and the preceding private-sector forecasts. The analysis shows that macroeconomic news shocks had economically and statistically significant effects on Italian bond spreads in 2012–2014 before quantitative easing, while the effects were negligible afterwards although with a partial exception of a period in 2019 when the net asset purchases were paused. [ABSTRACT FROM AUTHOR]

In the context of the studies of income and wealth distribution, this paper explores evidence to what extent recent monetary policy had distribution effects. This research utilizes the Federal Reserve Board's Survey of Consumer Finances to identify at least two sub populations and follow their dynamics as monetary policy moved from conventional interest rate setting to unconventional Quantitative Easting policy. This is achieved through use of Weighted Expectation Maximization Cluster Modeling, and the Malhalanobis Distance between cluster means. This approach is used to study volatility and bifurcation in distributions of capital gains and incomes to U.S. households through the Financial Crisis and Sars-CoV-2 pandemic. [ABSTRACT FROM AUTHOR]

Using a panel quantile vector autoregression model, we investigate the global liquidity effect of quantitative easing (QE) in the US on emerging markets (EMs) over the period 2010:Q1 to 2019:Q3. Our empirical result suggests that tapering of QE in the US triggers a large capital outflow from the EMs. In addition, we find a significant asymmetric effect of QE on portfolio investment flows to EMs with a stronger effect in the higher quantiles. The implication of these findings is that tapering the large-scale asset purchases and other instruments of unconventional monetary policy have a larger effect on EMs. [ABSTRACT FROM AUTHOR]

This paper evaluates the relationship between monetary and fiscal policy and the relative effectiveness of macroeconomic stabilization through the lens of Modern Money Theory (MMT). We articulate previously-neglected aspects of monetary sovereignty to offer a new interpretation of the Bernanke Doctrine that emerged in the wake of the 2008 Global Financial crisis. This Doctrine validated key MMT precepts and paved the way for fiscal policy activism in response to COVID19. The paper argues that fiscal and monetary policy coordination is not new or rare. It is an intrinsic feature of sovereign monetary regimes, allowing for more effective policy responses to financial crises or pandemics. To the extent that monetary policy is able to stabilize an unstable economy, it is largely due to its fiscal components. This recognition also calls for a rethinking of fiscal policy. [ABSTRACT FROM AUTHOR]

The economic institutionalist literature often suggests that sub-optimal institutional arrangements impart unique distortions in China, and excessive corporate debt is a symptom of this condition. However, lax monetary policies after the global financial crisis, and specifically, quantitative easing have led to concerns about debt bubbles under a wide range of institutional regimes. This study draws on data from Chinese listed firms, supplemented by numerous macroeconomic control variables, to isolate the effect of international capital flows from other drivers of firm leverage. We conclude that the rise in, and distribution of, Chinese corporate debt can partly be ascribed to the effects of monetary policy outside of China and that Chinese institutional features amplify these effects. Whilst Chinese firms are affected by developments in the global financial ecosystem, domestic institutional realities and distortions may unevenly add their own particular effects, providing further support for and extending the variegated capitalism literature. [ABSTRACT FROM AUTHOR]

Identifying the effects of quantitative easing (QE) on asset return correlations is critical to assessing such policies' impact across financial markets. In this paper, we use a dynamic conditional correlation model that allows us to measure the impact of unconventional monetary policy on time‐varying correlations. Our results suggest that QE significantly affected correlations between stocks and bonds after the Great Recession via short‐term portfolio balance effects. The findings are critical for policy‐makers and practitioners alike. Central banks should consider the impact of monetary policy on asset correlations in their cost–benefit analyses. Likewise, portfolio managers are encouraged to factor in the effects of monetary policy on correlations to optimize portfolios and reduce potential losses strategically. [ABSTRACT FROM AUTHOR]

This study investigates the impact of Central Bank interventions on the pricing dynamics of select stock markets. The research utilizes the instrumental variables three-stage least square (3SLS) model approach. It analyses the effects of variations in the Federal Reserve's balance sheet size across three distinct intervention scenarios: the 2008–2013 Great Recession, the 2020–2021 COVID-19 pandemic periods, and an overarching analysis spanning these timelines. Our methodology includes estimations of the Seemingly Unrelated Regression Equations (SURE), and the results are robust under the two-step Generalized Method of Moments (GMM). Our findings indicate that changes in the size of the Fed's balance sheet correlate significantly with the pricing of principal U.S. equity market indices. This correlation reflects a time-dependent effect emanating from the Fed's balance sheet expansion, marking a growing divergence between the adaptability of pricing mechanisms in equity and debt markets. Notably, the Federal Reserve's interventions during the COVID-19 crisis are associated with an increase of approximately 0.0403 basis points per billion in treasury yields. This research makes a significant contribution to the understanding of financial asset pricing, particularly by elucidating the extent to which interventions in government debt securities engender price distortions in certain equity markets. [ABSTRACT FROM AUTHOR]

This paper analyzes the effects of central bank interventions via large-scale purchases of government debt securities on the pricing of stock market indices. This study examines the effects of changes in the size of the Federal Reserve's balance sheet in three intervention scenarios: during the 2008–2013 period, the 2020–2022 period, and in the years between by using the instrumental variables three-stage least squares (3SLS) method for a time series approach, and calculates the effects of these interventions on each index in a fund of funds setup using the panel data strategy. This study confirms that large-scale purchases of government debt securities in response to the Great Recession and COVID-19 crises influenced the pricing of equity markets via their effect on the pricing of treasury bonds, with different degrees of sensitivity of each index to the effects on yields. Although the findings apply to the U.S. market, the results indicate that the pricing of small capitalization indices such as the Russell 2000 are less sensitive to changes in treasury yields caused by central bank interventions than large capitalization indices such as the DJIA. This research contributes to the understanding of financial asset pricing, particularly by identifying price distortions within equity market portfolios. [ABSTRACT FROM AUTHOR]

Quantitative Easing (QE) has become a critical monetary policy tool, particularly after the 2008 Financial Crisis and the COVID-19 pandemic, aimed at stimulating economic activity through large-scale bond purchases. QE raises asset prices, lowers interest rates, and enhances market liquidity, but its long-term effects on financial stability and instruments like Contingent Convertible (CoCo) bonds are less understood. This study explores how QE indirectly impacts CoCo bond activation by influencing banks’ capital adequacy. Using the 2023 Credit Suisse crisis as a case study, we model how QE reshapes bank capital structures, increasing CoCo activation risks during financial instability.

Studying monetary authority response to macroeconomic imbalances using the interest rate as a proxy variable for monetary policy became ineffective after the financial crisis, when central banks exhausted the effective capacity of interest rates by reaching the zero lower bound (ZLB). In an effort to analyse the unconventional response deployed by central banks, we present and estimate a modified reaction function that uses money supply as the operational instrument of monetary policy for the Federal Reserve and the European Central Bank, and we verify its utility as an explanatory instrument for the behaviour of the two monetary authorities. By applying our strategy, it is feasible to identify both monetary policy reaction with regard to the economic situation as well as other possible monetary authority concerns regarding governments' fiscal behaviour and the evolution of asset markets, regardless of the monetary policy applied at any given time. [ABSTRACT FROM AUTHOR]

This article aims to investigate the anti-crisis reforms of the monetary policy of the Federal Reserve System (FRS) of the United States during the global financial crisis, the pandemic period, and the worsening of the military conflict in Ukraine. The study showed a significant decline in inflation due to the reduced demand for goods and services in the first two crises. Under these conditions, the Fed needed unprecedented measures to soften its policy. Repo rates fell to their lowest level during the 2008 crisis but rose during the pandemic, indicating a significant demand for these instruments to ensure stability. Since the 2008 crisis and pandemic, the easing policy has led to an increase in Fed assets. This has significant implications for the ability of monetary policy to respond to today's challenges and has led to the need for very careful control of assets. But in 2022, the Fed had to take measures to curb inflationary trends, in particular raising the discount rate. The regression analysis carried out in the article demonstrates a significant impact of monetary instruments on the consumer price index, which indicates the effectiveness of those methods used by the Fed. The article analyzes the use of traditional and nontraditional monetary policy tools of the Fed in different economic conditions and the possible risks and negative consequences of the use of non-traditional tools, such as quantitative easing and very low interest rates. Although these techniques can support the economy in a crisis, their risks need to be taken into account. The findings contribute to the knowledge of monetary policy as a management tool and provide stakeholders with valuable insights for future strategizing. [ABSTRACT FROM AUTHOR]

This study assesses the effects of the European Central Bank's (ECB) unconventional monetary policy (UMP) on the prices of selected European stock market indices during the European sovereign debt (2010–2012) and the COVID-19 pandemic (2020–2022) crises interventions. This research employs the instrumental variables (IV) two-stage least squares (2SLS) model approach to evaluate the effects of changes in the size of the ECB's balance sheet on the pricing of key equity market indices in Europe. The results of this study suggest that the ECB's asset value expansion had the opposite statistically significant effects on the European stock market indices' prices between the interventions. That is, an increase in the ECB's balance sheet size was associated with a decrease in the prices of the indices during the sovereign debt crisis and with a rise during the COVID-19 pandemic. This research pinpoints the price sensitivity of each of the European equity indices to the ECB's UMP and determines the different outcomes of the ECB's quantitative easing policy between the interventions. [ABSTRACT FROM AUTHOR]

Summary: This paper evaluates the impact of quantitative easing on income and wealth of individual euro area households. We first estimate the aggregate effects of a quantitative easing (QE) shock, identified by means of external instruments, in a multi‐country vector autoregression (VAR) model with unemployment, wages, gross operating surplus, interest rates, house prices, and stock prices. We then distribute the aggregate effects across households using a reduced‐form simulation on micro‐data, which captures the portfolio composition, the income composition, and the earnings heterogeneity channels of transmission. The earnings heterogeneity channel is important: QE compresses the income distribution because many households with lower incomes become employed. In contrast, monetary policy has only negligible effects on the Gini coefficient for wealth: While high‐wealth households benefit from higher stock prices, middle‐wealth households benefit from higher house prices. [ABSTRACT FROM AUTHOR]

The US Federal Reserve has been using quantitative easing as an unconventional monetary policy tool for providing liquidity and credit-market facilities to banks, and undertaking large-scale asset purchases in periods of crisis. This study carefully examines whether the US stock market has been responsive to the use of quantitative easing over time. A major contribution of this study to the extant literature is the introduction of the novel rolling windows nonparametric causality-in-quantiles approach to studying the reaction of the stock market to quantitative easing. This approach provides a means of investigating the time-varying causality between the variables across quantiles. The standard nonparametric causality-in-quantiles test results show that stock market performance is significantly predicted by quantitative easing, except at very low and very high levels of stock returns (volatility). The rolling windows nonparametric causality-in-quantiles test results indicate that the causal effect of quantitative easing on stock market volatility and returns becomes pronounced during periods of crisis. The reactions are most significant in periods corresponding to the Asian financial crisis, the global financial crisis and the COVID-19 pandemic outbreak. Overall, the causal effect of quantitative easing on both stock market returns and volatility changes through time; the effect on stock market returns is also greater than on stock market volatility. [ABSTRACT FROM AUTHOR]

Competing macroeconomic hypotheses have been developed to explain the US housing market and possible bubble behavior. We employ both seasonally adjusted (SA) and non-seasonally adjusted (NSA) monthly data for about 30 independent variables to examine alternative macro hypotheses for home prices. Using a neural network model as an atheoretical non-linear approach to capture the relative importance of alternative macro variables, we show that these hypotheses generate different macro relevance. As an alternative to testing housing time series, we focus on bubble identification being hypothesis dependent. Model forecast errors (residuals) identify the potential presence of bubbles through standardized residual CUSUM tests for structural breaks. By testing for housing bubbles from these unstructured models, we generate conclusions on the presence of bubbles prior to the Great Financial Crisis and the post-pandemic periods. Competing macro hypotheses or narratives will generate different conclusions on the presence of bubbles and create bubble identification issues. [ABSTRACT FROM AUTHOR]

Black Swan Events (BSEs) are those unplanned events that significantly and negatively impact various aspects of human life. The COVID-19 pandemic and the Global Financial Crisis (GFC) in 2008 have been considered by many as BSE in recent times. During these events, governments usually implement policies to assuage the impact on various sectors of the economy and the populace. This paper identified some strategies and policies adopted by the Australian government during the COVID-19 pandemic, especially the QE monetary policy and their impact on the housing market from the perspective of stakeholders in the industry. A qualitative research method was used to solicit information from respondents. A thematic analysis was employed to unravel the government's fiscal policies and the QE monetary policy as responsible for mitigating the effects of BSE. These policies sought to, among other reasons, keep interest rates low and keep money in the economy to revive the ailing economy. The findings revealed that the BSEs affected the Australian economy in multiple ways. We also found that the conventional and unconventional policy strategies deployed in response to the BSEs in Australia were impacting the Australian housing market in varying significance manner. [ABSTRACT FROM AUTHOR]

This article aims to investigate the anti-crisis reforms of the monetary policy of the Federal Reserve System (FRS) of the United States during the global financial crisis, the pandemic period, and the worsening of the military conflict in Ukraine. The study showed a significant decline in inflation due to the reduced demand for goods and services in the first two crises. Under these conditions, the Fed needed unprecedented measures to soften its policy. Repo rates fell to their lowest level during the 2008 crisis but rose during the pandemic, indicating a significant demand for these instruments to ensure stability. Since the 2008 crisis and pandemic, the easing policy has led to an increase in Fed assets. This has significant implications for the ability of monetary policy to respond to today's challenges and has led to the need for very careful control of assets. But in 2022, the Fed had to take measures to curb inflationary trends, in particular raising the discount rate. The regression analysis carried out in the article demonstrates a significant impact of monetary instruments on the consumer price index, which indicates the effectiveness of those methods used by the Fed. The article analyzes the use of traditional and non-traditional monetary policy tools of the Fed in different economic conditions and the possible risks and negative consequences of the use of non-traditional tools, such as quantitative easing and very low interest rates. Although these techniques can support the economy in a crisis, their risks need to be taken into account. The findings contribute to the knowledge of monetary policy as a management tool and provide stakeholders with valuable insights for future strategizing.

We investigate the behavior of shorts, considered sophisticated investors, before and after a set of Federal Reserve unconventional monetary policy announcements that spot bond markets did not fully anticipate. Short interest in agency securities systematically predicts bond price changes and other asset returns on the days of monetary announcements, particularly when growth or monetary news is released, indicating shorts correctly anticipate these surprises. Shorts also systematically rebalance after announcements in the direction of the announcement surprise when the announcement releases monetary or growth news, suggesting that shorts interpret these announcements to imply further yield changes in the same direction. [ABSTRACT FROM AUTHOR]

This paper (re-)evaluates the effectiveness of central bank asset purchases in the euro area given their prominent role in the ECB's response to the pandemic as well as the evidence from the US suggesting diminishing returns of this policy measure over time. We analyse their macroeconomic impact in the euro area using a time-varying parameter structural vector autoregression with stochastic volatility and perform identification via sign and zero restrictions of Arias et al. (Econometrica 86:658–720, 2018), their fusion with high-frequency information approach akin to Jarociński and Karadi (Am Econ Macroecon 12:1–43, 2020) and a novel method which merges high-frequency identification with narrative sign restrictions of Antonlin-Diaz and Rubio-Ramirez (Am Econ Rev 108:2802–2829, 2018). We find that the potency of the ECB's asset purchases to lift inflation has indeed considerably declined over time with several factors contributing to a more muted response of prices to central bank asset purchases. Our results show that the reanchoring channel is no longer active while the counterproductive effects via the mechanism outlined in Boehl et al. (Working Paper No. 691, 2020), which we dub the capacity utilization channel, have emerged lately and are further complemented with disinflationary effects stemming from the cost channel. Also, the effects passed through more standard transmission channels of central bank asset purchases like portfolio rebalancing and signalling, while still significant, appear to be less persistent recently. Overall, our findings point to a diminishing return of the ECB's asset purchases to stabilize inflation and its expectations in the euro area. [ABSTRACT FROM AUTHOR]

Monetary financing – the issuance of public money to support public expenditure – remains a widespread policy taboo. In this article, we analyze the operational practices of the Bank of England, the Federal Reserve and the European Central Bank (ECB) from the 20th onwards to argue that monetary finance should be understood as a conventional and legitimate part of central banks' core functions. We argue that monetary financing serves a crucial macro-financial role in the face of large fluctuations in the demand for and supply of government debt, where the central bank acts to stabilize sovereign debt markets. We show that monetary financing has been a stable and pervasive feature of the Bank of England's and the Federal Reserve's operations. Turning to the ECB, we show that by the mid-2000s the view came to dominate the institution that the central bank should allow markets to punish governments for excessive deficits. This view informed the ECB's catastrophic reluctance to act on the 2008 and 2009 Financial Crisis deficits. By 2020 that attitude had once again largely been abandoned. [ABSTRACT FROM AUTHOR]

Proponents of quantitative easing (QE) unconventional policy have rather overstated some evidence that structural time series models do not predict long‐term asset prices and yields as well as naive random walk forecasts, implying that predictions of price reversals cannot be profitable and, therefore, that QE effects are not transitory. Indeed, in this work we present evidence that naive models do not outperform structural vector autoregressive and Markov switching models in out‐of‐sample forecasting of corporate bond yields purchased by the European Central Bank, when the information set includes base money growth. It turns out that structural time series models provide additional information regarding the likelihood of price reversals, thus motivating investors to offset the effects of QE interventions if they perceive unconventional monetary policy regimes as temporary. [ABSTRACT FROM AUTHOR]

We study the transmission mechanism of a Green QE, defined as a policy that tilts the central bank's balance sheet toward green bonds, that is bonds issued by non-polluting firms. We merge a DSGE framework with an environmental model, in which CO2 emissions increase the stock of atmospheric carbon, which in turn decreases total factor productivity. Imperfect substitutability between green and brown bonds is a necessary condition for the effectiveness of Green QE. However, even under this assumption, the effect of Green QE in reducing emissions is negligible and in some cases close to nil. [ABSTRACT FROM AUTHOR]

The environmental impacts of monetary policy received academic attention after the 2008 financial crisis and the 'market neutral' quantitative easing policies that followed. This article examines the Bank of England's Corporate Covid Financing Facility (CCFF) and the Asset Purchasing Facility (APF) between June 2020 and June 2021 to assess whether the Bank's response to the COVID-19 pandemic was aligned with the transition to sustainability. The data indicates that the Bank of England's monetary allocation schemes again served as a panacea for businesses with ecologically intensive business models and a Treasury committed to restoring the pre-existing growth model. Indeed, the Bank's QE schemes now represents an element of the crisis management governance that repeatedly 'locks in' the ecologically-calamitous economic trajectory at potential critical junctures. The Bank's shielding of its technocratic and depoliticised status has thus far inhibited any leadership role in tackling the climate crisis, despite its growing power as an actor of economic governance at times of crisis and purported enthusiasm to 'build back better'. [ABSTRACT FROM AUTHOR]

At the COVID pandemic's onset, many central banks responded with unconventional monetary policy (UMP) programmes. In emerging and developing economies, various programmes included components of direct government financing (DGF). This article collects data on UMPs announced during 2020 and investigates how inflation expectations responded to different types of programmes, providing a measure of real-time public perceptions of the inflation risks associated with them. Programme announcements, including DGFs, did not lead to significant increases in inflation expectations. Possibly, the one-off nature of central banks' COVID response was seen as credible in many countries, preventing an immediate de-anchoring of expectations. [ABSTRACT FROM AUTHOR]

Arguably the greatest concern surrounding quantitative easing is its potential for expanding the money supply at a rate which outstrips the rate of growth in national output. This will almost surely lead to greater uncertainty in inflationary expectations and this, in turn, can have adverse consequences for stock prices. Our analysis employs the hedging procedures which underscore the Fundamental Theorem of Asset Pricing in conjunction with stochastic processes for stock prices and the money supply to design hedging strategies against potential downside movements in stock prices caused by the uncertainty in inflationary expectations associated with rapid monetary growth. [ABSTRACT FROM AUTHOR]

The aim of the article is to identify the changes of selected economic variables in Japan, Poland, the USA and the euro area and to evaluate the impact of these variables on these economies in 2000–2022. The hypothesis posed in the article: The economies of Japan, Poland, the USA and the euro zone have overcome the economic shocks that occurred in the first two decades of the 21st century. Methodology: The study included a review of the literature on the subject, the presentation and analysis of statistical data, including its graphical presentation. Six economic indicators were selected for analysis, such as: the unemployment rate, inflation, General Government debt, long-term interest rates, GDP per capita, and GDP growth in Japan, Poland, the United States and the euro area in 2000–2022. Results of the research: Over the past 20 years, economies have been hit by unprecedented crises such as the Global Financial Crisis (GFC) and Covid-19, and yet we note that the surveyed countries and the euro zone showed positive economic growth for most of the period and successfully fought unemployment. Japan tried to get out of periods of deflation, but out of the examined 23 years, deflation was recorded in Japan for 15 years. In the years 2000–2022, the highest economic growth was most often recorded in Poland and the lowest in Japan, but the highest inflation was also most often recorded in Poland. In all the surveyed countries and the euro zone, a tendency to increase the GG of debt was clearly noticed.

Abstract This article argues that the Bank of Japan is caught in a bind owing to both its quantitative easing policies of the last two decades and chronic inflation. In response to quantitative tightening abroad, the Bank of Japan is under pressure to raise interest rates and/or allow yields on ten-year government bonds to rise. This is because the response to inflation among G7 nations has undermined the yen, which have made clear the flaws of the Bank of Japan’s approach to restoring economic growth, namely quantitative easing as any attempt to adapt to international efforts to address inflation, using monetary methods, runs the risk of triggering a cascade of loan defaults due to illiquidity issues both at home and in foreign markets. To demonstrate this, the article evaluates Japanese quantitative easing measures, including the Bank of Japan’s yield curve control policy, and assesses the problems it faces due to inflation and the responses to it, including monetary tightening abroad.

We investigate the impact of federal budget deficits and other factors on the ex-post and ex-ante real yields on high-grade municipal bonds. The estimation results reveal that both yields increase with the real yield on 30-year Moody’s Aaa-rated bonds and provisions in the Community Reinvestment Act but decrease with net capital inflows, the real GDP growth rate, and the average effective federal income tax rate. Most importantly, both yields are increasing functions of the federal budget deficit. These results support limiting the size of federal budget deficits to avoid the excessive crowding out of private investment spending.

This article argues that the Bank of Japan is caught in a bind owing to both its quantitative easing policies of the last two decades and chronic inflation. In response to quantitative tightening abroad, the Bank of Japan is under pressure to raise interest rates and/or allow yields on ten-year government bonds to rise. This is because the response to inflation among G7 nations has undermined the yen, which have made clear the flaws of the Bank of Japan's approach to restoring economic growth, namely quantitative easing as any attempt to adapt to international efforts to address inflation, using monetary methods, runs the risk of triggering a cascade of loan defaults due to illiquidity issues both at home and in foreign markets. To demonstrate this, the article evaluates Japanese quantitative easing measures, including the Bank of Japan's yield curve control policy, and assesses the problems it faces due to inflation and the responses to it, including monetary tightening abroad. [ABSTRACT FROM AUTHOR]

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The aim of the article is to identify the changes of selected economic variables in Japan, Poland, the USA and the euro area and to evaluate the impact of these variables on these economies in 2000-2022. The hypothesis posed in the article: The economies of Japan, Poland, the USA and the euro zone have overcome the economic shocks that occurred in the first two decades of the 21st century. Methodology: The study included a review of the literature on the subject, the presentation and analysis of statistical data, including its graphical presentation. Six economic indicators were selected for analysis, such as: the unemployment rate, inflation, General Government debt, longterm interest rates, GDP per capita, and GDP growth in Japan, Poland, the United States and the euro area in 2000-2022. Results of the research: Over the past 20 years, economies have been hit by unprecedented crises such as the Global Financial Crisis (GFC) and Covid-19, and yet we note that the surveyed countries and the euro zone showed positive economic growth for most of the period and successfully fought unemployment. Japan tried to get out of periods of deflation, but out of the examined 23 years, deflation was recorded in Japan for 15 years. In the years 2000-2022, the highest economic growth was most often recorded in Poland and the lowest in Japan, but the highest inflation was also most often recorded in Poland. In all the surveyed countries and the euro zone, a tendency to increase the GG of debt was clearly noticed. [ABSTRACT FROM AUTHOR]

The paper studies the quantitative easing (QE)-inflation nexus, as well as other inflationary factors such as supply, demand, oil and fiscal shocks. Findings are: (i) QE can be seen as a complementary policy instrument for short-term stabilization; (ii) the interest rate instrument still produces paradoxical effects on inflation and output for short horizons in the post-2007 period; (iii) fiscal, supply and demand shocks exert the highest percentage effects on inflation in the post-2019 period, but QE and interest rate interventions also account for a sizable variation; and (iv) inflation takes a long time to converge or transition after a shock. [ABSTRACT FROM AUTHOR]

This article is intended to find out how the Quantitative Easing model is implemented in Japan and the United States, how the Quantitative Easing model is applied by Bank Indonesia in 2020 to 2021, and how the Quantitative Easing arrangement is implemented by Bank Indonesia within the framework of Indonesian laws and regulations. This research was conducted using the juridical-normative method by reviewing the literature and the laws and regulations relating to Quantitative Easing in Indonesia. This article is written from research process that conducted by the method of normative-judicial approach. The results showed that Japan implemented Quantitative Easing more broadly by involving the Central Bank's monetary actions in the realm of interest rates and the purchase of securities in the public and private spheres. The United States has a narrower scope by only relying on the purchase of securities or bonds. In Indonesia, Bank Indonesia in 2020-2021 will implement Quantitative Easing to increase liquidity in the banking sector based on the authority given in Law No. 2 of 2020 which is more similar to the Japanese model. This model is known only to be regulated in Law No. 2 of 2020 specifically for handling the economic crisis due to the COVID-19 Pandemic

In the context of accelerating inflation growth in 2021-2022 in the Euro Area, the ECB is considering tightening monetary policy, i.e. moving from a quantitative easing (QE) monetary policy that has been practiced for almost a decade in the Euro Area to a quantitative tightening (QT) monetary policy. This article examines what this transition entails as QE provides an easing of financial conditions on a broader scale by reducing long-term interest rates, while the adoption of QT should have the opposite effect, although not necessarily of the same magnitude, i.e. reducing the size of a central bank’s asset balance sheet.