QE has persistent impact on foreign exchange, researchers find

flags currency foreign exchange and technology

Quantitative easing has “large and persistent effects” on the exchange rate, a team of researchers at the Federal Reserve Bank of Dallas find.

In the paper, Luca Dedola, Georgios Georgiadis, Johannes Gräb and Arnaud Mehl investigate the currency effects of the Federal Reserve and the European Central Bank’s QE programmes from 2010 to 2017. 

They find that ECB announcements of new QE measures or programme extensions were followed by a depreciation of the euro against the dollar, and that when

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