Did the Federal Reserves' Quantitative Easing (QE) in aftermath of financial crisis have macroeconomic effects? To answer this question, authors estimate a large-scale DSGE model over sample from 1998 to 2020, including data Fed's balance sheet. The allow for QE affect economy via multiple channels that arise several frictions. Their nonlinear Bayesian likelihood approach fully accounts zero lo...

This paper estimates international spillover e§ects of US Quantitative Easing (QE) on emerging market economies. Using a Bayesian VAR on monthly US macroeconomic and financial data, we first identify the US QE shock with non-recursive identifying restrictions. This identified shock is then used in another Bayesian panel VAR for emerging market economies to infer the international spillover e§ec...

This paper presents a portfolio model of asset price effects arising from central bank large-scale purchases, or quantitative easing (QE). Two financial frictions — segmentation the market for reserves and imperfect substitutability give rise to two distinct effects. One is well known derives reduced supply purchased assets. The other new, runs through banks’ responses expansions, independent t...