Balance sheet policies may not be enough to lift expectations, Dutch research finds
Working paper analyses the impact of credit and quantitative easing policies
Central banks aiming to lift inflation expectations by increasing the size of their balance sheet "may not succeed", according to a working paper published The Netherlands Bank.
In Central bank balance sheet policies and inflation expectations, Jan Willem van den End and Christiaan Pattipeilohy analyse the effects of credit and quantitative easing (QE) on inflation expectations and exchange rates.
"Our analysis shows that balance sheet policies by themselves may not prove sufficient to lift
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