DP15449 Fifty Shades of QE: Comparing Findings of Central Bankers and Academics

Author(s): Brian Fabo, Martina Jancokova, Elisabeth Kempf, Lubos Pástor
Publication Date: November 2020
Date Revised: April 2021
Keyword(s): career concerns, central bank, Economic research, QE, Quantitative easing
JEL(s): A11, E52, E58, G28
Programme Areas: Financial Economics, Monetary Economics and Fluctuations
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=15449

We compare the findings of central bank researchers and academic economists regarding the macroeconomic effects of quantitative easing (QE). We find that central bank papers find QE to be more effective than academic papers do. Central bank papers report larger effects of QE on output and inflation. They also report QE effects on output that are more significant, both statistically and economically, and they use more positive language in the abstract. Central bank researchers who report larger QE effects on output experience more favorable career outcomes. A survey of central banks reveals substantial involvement of bank management in research production.