Journal of

year 73

The economic effects of central bank bond purchase programmes

Leonardo Gambacorta, Boris Hofmann
March 2012 - n°3
Jel codes: E52, E58

Monetary policy actions taken over the past three years were key in preventing a financial meltdown. Empirical evidence suggests that central bank bond purchase programmes were effective in lowering bond yields and supporting economic activity. Nevertheless policymakers also need to bear in mind the limits and unintended consequences of their actions. Further rounds of bond purchase programmes may be less effective than initial ones and could determine collateral damages that overcome short term benefits



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