The effectiveness of quantitative easing (QE) depends importantly on the degree of "tightness" in the bond market, according to a working paper published on February 7 by Sveriges Riksbank.
Marien Ferdinandusse, Maximilian Freier and Annukka Ristiniemi employ a search theoretic model, in which bond market tightness works much the same way as labour market tightness in standard models. Investors that have a stronger "preferred habitat" increase bond market tightness, and the tighter the market, t
- Making the rules and breaking the mould (Allan Meltzer: 1928–2017)
- BoE economists criticise DSGE inflation modelling
- Indonesian deputy Perry on revolutionising monetary and financial policy
- Commission should have power to order CCPs to relocate to EU – Cœuré
- South African governor rejects calls to change mandate