Monetary policy transmission during QE times: role of expectations and premia channels

Iryna Kaminska and Haroon Mumtaz Since 2009, when policy rates reached their effective lower bound, quantitative easing (QE) has become an important instrument of central bank monetary policy. It is aimed to work via long-term yields. The literature confirms that QE helped lower long-term yields. But the yields have two components – expectations and term […]

Monetary policy transmission during QE times: role of expectations and premia channels