Fed’s QE2 will have ‘modest impact’, says San Francisco paper

san-francisco-federal-reserve

A working paper released by the Federal Reserve Bank of San Francisco on October 24 says the effects of the Fed's second round of quantitative easing (QE2) is "likely to be modest", but will have a lasting impact on US GDP.

The authors, Han Chen, Vasco Curdia and Andrea Ferrero, find the boost to GDP growth is "unlikely to exceed a third of a percentage point" but also found inflationary consequences will be very small.

Combining QE2 with a commitment to keep interest rates low for an extended

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: