After outlining some of the monetary developments associated with quantitative easing (QE),
we measure the impact of the UK’s initial 2009–10 QE programme on bonds and other …

We examine empirically whether asset prices and exchange rates may be admitted into a
standard interest rate rule, using data for the United States, the United Kingdom, and Japan …

Stabilization policy involves joint monetary and fiscal rules. We develop a model enabling
us to characterize systematic simple monetary and fiscal policy over the business cycle. We …

Federal Reserve purchases of bonds in recent years have meant that a smaller proportion
of long-dated government debt has had to be held by other investors (private sector and …

Monetary authorities often seem reluctant to discuss the conduct of monetary policy. There
is a concern that greater openness in monetary policy-making may lead to volatility in …

In light of the large and sustained rise in real interest rates in the late 1970s and early 1980s,
this paper reviews: (i) the theoretical discussion on the determination of nominal and real …

Lucas has recently suggested that the ‘shoe‐leather’ costs of inflation may amount to as much
as 1% of GNP in the United States when moving to the Friedman optimum. We assess his …

We estimate the extent to which unconventional ECB policies have depressed sovereign
bond yields in the euro area. We decompose yields into a component that captures riskneutral …

The financial crisis has led to the development of an active debate on the use of macro-prudential
instruments for regulating the banking system, in particular for liquidity and capital …

In the canonical monetary policy model, money is endogenous to the optimal path for
interest rates and output. But when liquidity provision by banks dominates the demand for …