Abstract
The impact of unconventional monetary policies on asset prices can be broken into two distinct time periods in the US. While the impact of large-scale asset purchases was substantial on stock prices and the exchange rate before September 2011, their impact almost fully disappears afterward. On the contrary, the effects of forward guidance on asset prices grow substantially after this date. This shift could be explained by the severe illiquidity in financial markets before September 2011 and the Federal Reserve’s explicit communication regarding the initial policy rate hike afterward.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
