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Using Changes in Auction Maturity Sectors to Help Identify the Impact of QE on Gilt Yields

Bibliographic Data

ID9707329
AuthorsNick McLaren (Bank of England), Ryan N Banerjee (Bank for International Settlements), Ryan Banerjee (0000-0002-5523-7334, Bank for International Settlements), David Latto (Bank of England)
Year2014
Volume124
Issue576
Pages453-479
Publication date2014-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12141
OpenAlexW2124220701
LanguageEN
Citations received5
References cited12

This article uses a novel way of identifying part of the impact of quantitative easing (QE) on gilt yields, using natural experiments associated with Bank of England announcements about changes in the maturity distribution of future gilt purchases. We find that changes in expected QE purchases had a significant effect on gilt yields following each announcement in March 2009, August 2009 and February 2012. The local supply effects we identify appear to be important: they may account for around half of the total impact on gilt yields in these events, and are passed through to yields of related assets

Business · Central bank · Distribution (mathematics · Economics · Maturity (psychological · Monetary economics · Monetary policy · Natural experiment · Political science · Quantitative easing · Statistics · Financial Markets and Investment Strategies · Housing Market and Economics · Mathematics · Monetary Policy and Economic Impact

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  • Quantitative Easing and the Price-Liquidity Trade-Off

    Open Access•Marien Ferdinandusse, Maximilian Freier et al.•SSRN Electronic Journal•2017

  • Unconventional Monetary Policies in the Euro Area, Japan, and the United Kingdom

    Open Access•Giovanni Dell’Ariccia, Pau Rabanal et al.•The Journal of Economic…•2018

  • Using Changes in Auction Maturity Sectors to Help Identify the Impact of QE on Gilt Yields

    Open Access•Nick McLaren, Ryan N Banerjee et al.•The Economic Journal•2014

  • Unexpected Supply Effects of Quantitative Easing and Tightening

    Open Access•Stefania D’Amico, Tim Seida•The Economic Journal•2024

  • A General Equilibrium Approach To Monetary Theory

    James Tobin•Journal of money credit and banking•1969

  • "Mr. Hicks and the "Monetarists

    Karl Brunner, Allan H Meltzer•Economica•1973

  • QE and the Gilt Market

    Open Access•Michael Joyce, Michael A S Joyce et al.•The Economic Journal•2012

  • Using Changes in Auction Maturity Sectors to Help Identify the Impact of QE on Gilt Yields

    Open Access•Nick McLaren, Ryan N Banerjee et al.•The Economic Journal•2014

  • The Federal Reserve's Large‐scale Asset Purchase Programmes

    Open Access•Stefania D’Amico, William English et al.•The Economic Journal•2012

Unique citing works5
Citations per year0,42
Citation span2014 - 2024 (11)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 5
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