Essays in financial economics

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Abstract/Contents

Abstract: With quantitative easing (QE), central banks buy long-term government bonds to lower long-term interest rates. QE removes from the market both the investment risk associated with ownership of the bonds and also the transaction services conveyed by these bonds, which include facilitating the matching of buyers and sellers in the bond market. To the extent that it lends its stock of bonds back to market participants, a central bank replaces these transaction services. In contrast, by not lending its bonds, the central bank further lowers long-term rates by increasing the scarcity of these transaction services. This amplification of the impact of QE on long-term rates through reduced bond lending allows the European Central Bank to achieve its QE rate objective more easily because the alternative of even greater purchases of bonds could be politically contentious.

Type of resource	text
Form	electronic resource; remote; computer; online resource
Extent	1 online resource.
Place	California
Place	[Stanford, California]
Publisher	[Stanford University]
Copyright date	2022; ©2022
Publication date	2022; 2022
Issuance	monographic
Language	English

Author	Roh, Hee Su
Degree supervisor	Duffie, Darrell
Thesis advisor	Duffie, Darrell
Thesis advisor	Krishnamurthy, Arvind
Thesis advisor	Lustig, Hanno
Degree committee member	Krishnamurthy, Arvind
Degree committee member	Lustig, Hanno
Associated with	Stanford University, Graduate School of Business

Genre	Theses
Genre	Text

Statement of responsibility	Hee Su Roh.
Note	Submitted to the Graduate School of Business.
Thesis	Thesis Ph.D. Stanford University 2022.
Location	https://purl.stanford.edu/kt349rc5645

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