Afternoon Must-Read: Martin Weale and Tomasz Wieladek: Macroeconomic Effects of Asset Purchases

…an asset purchase announcement of 1% of [annual] GDP leads to a statistically significant rise of .58% (.25%) and .62% (.32%) rise in real GDP and CPI for the US (UK). In the US, this policy is transmitted through the portfolio balance channel and a reduction in household uncertainty. In the UK, the policy seems to be mainly transmitted through the impact on investors’ risk appetite and household uncertainty.