–BOE Bulletin Also Cites Comments From MPC Miles At Nov QE Conference
LONDON (MNI) – Bank of England Chief Economist Spencer Dale says
research seems to broadly support the idea that QE has helped to
mitigate the economic effects of the financial crisis, but there are
doubts over the precise magnitude of its effects and the channels
through it operates.
Noting the BOE’s November conference on QE, a precis of which is
contained in the latest BOE Quarterly Bulletin, Dale says:
“…the papers broadly supported the emerging consensus that QE and
other unconventional monetary policies have helped to mitigate the
macroeconomic effects of the global financial crisis. There is, however,
considerable uncertainty about the precise magnitudes of the effects and
the main mechanisms through which the policies operate,” Dale writes.
The conference brought together leading experts on the subject of
QE from central banks and academia.
MPC Member David Miles emphasised the importance of providing a
“credible story behind the estimates of QE’s impact”.
The summary said that Miles also thought it a mistake to focus
solely on the impact of asset purchases on government bond yields: the
effect on the spreads of other asset yields to government bonds was just
as key, he stressed.
“Turning to the likely impact of the Bank of England’s latest
asset purchases, he (Miles) thought that many of the conditions that had
made purchases in 2009 effective had returned, including stressed bank
funding conditions”.
–London newsroom: 4420 7862 7492; email: dthomas@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
