QE1 and QE2 operated in opposite directions, ECB researchers find
The Federal Reserve's first two programmes of quantitative easing (QE) in response to the financial crisis, QE1 and QE2, functioned in opposite directions in terms of their effects both on emerging market economies and the US, according to a new working paper from researchers at the European Central Bank (ECB).
The paper, On the International Spillovers of US Quantitative Easing, by Marcel Fratzscher, Marco Lo Duca and Roland Straub, finds that QE1 was "highly effective in lowering sovereign
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