- Fifty Shades of Quantitative Easing: Comparing Findings of Central Bankers and Academics
Since the 2008 financial crisis, central banks around the world have deployed unconventional monetary policy tools such as quantitative easing (QE), forward guidance, and long？term refinancing operations. The popularity of these tools has grown since the outbreak of the COVID-19 pandemic. For example, the Federal Reserve, the European Central Bank, and the Bank of England all announced new large？scale asset purchases in March 2020. The effectiveness of unconventional monetary policy has been a subject of intense debate in both academic and policy circles. A significant part of the research on QE originates in central banks. This research, which is widely cited in the media, often finds QE to be effective. However, it has an aspect of self？assessment: when central banks evaluate QE, they are judging their own policy. Whether this aspect has any bearing on research output is an empirical question that we address in our work.