IMF research uncovers ‘puzzling’ effect of QE on the current account
Authors see QE having significant impact only when capital mobility is low
Research published by the International Monetary Fund has uncovered “somewhat puzzling” findings when investigating the impact of unconventional policies on a country’s current account balance.
In their paper, Direct and spillover effects of unconventional monetary and exchange rate policies, the authors develop a macro-economic model to quantify the effects of unconventional monetary policy both at home and abroad.
Authors Christian Saborowski, Horacio Sapriza, Joseph Gagnon, Juan Londono and
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