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Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp01n870zq96f
 Title: AN EVENT STUDY ANALYSIS OF THE EFFECTS OF QUANTITATIVE EASING ON LONG-TERM ASSET YIELDS Authors: Ma, Kevin Shuyi Advisors: Blinder, Alan Department: Economics Class Year: 2014 Abstract: Since the end of 2008, as a result of reducing the target federal funds rate to the zero lower bound, the Federal Reserve has had to resort to unconventional monetary policy, also known as quantitative easing, in order to further stimulate a deteriorating economy. The Federal Reserve has engaged in large-scale purchases of medium- and long-term assets with the intention of reducing long-term asset yields. In this paper, I explain how these purchases were implemented and discuss the monetary transmission mechanisms through which they might have impacted the economy. Examining how effective the Federal Reserve’s quantitative easing programs have impacted these yields, I present evidence that the large-scale asset purchases were successful in reducing longterm yields on a range of securities. I use an event study approach with varying window sizes to examine the asset yield changes immediately after a quantitative easing announcement was made. In doing so, I show that although the full effects on the longterm assets cannot be seen immediately, they are in fact significant and long-lasting. Extent: 67 pages URI: http://arks.princeton.edu/ark:/88435/dsp01n870zq96f Type of Material: Princeton University Senior Theses Language: en_US Appears in Collections: Economics, 1927-2016

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