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Luck, Stephan and Zimmermann, Tom (2020). Employment effects of unconventional monetary policy: Evidence from QE. J. Financ. Econ., 135 (3). S. 678 - 704. LAUSANNE: ELSEVIER SCIENCE SA. ISSN 0304-405X

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Abstract

This paper investigates employment effects of the Federal Reserve's quantitative easing policies (QE) via a bank lending channel. We find that banks with higher mortgage-backed securities holdings refinanced relatively more mortgages after the first round of QE, which increased local consumption and employment in the nontradable goods sector. In contrast, banks increased lending to firms and home purchase mortgage origination after the third round of QE, which led to a sizable increase in overall employment. Our findings are supported by new confidential loan-level data that show firms with stronger ties to affected banks increased employment and capital investment more during QE3. (C) 2019 Elsevier B.V. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Luck, Stephan UNSPECIFIED UNSPECIFIED UNSPECIFIED Zimmermann, Tom UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-343412
DOI:	10.1016/j.jfineco.2019.07.004
Journal or Publication Title:	J. Financ. Econ.
Volume:	135
Number:	3
Page Range:	S. 678 - 704
Date:	2020
Publisher:	ELSEVIER SCIENCE SA
Place of Publication:	LAUSANNE
ISSN:	0304-405X
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language CHANNELS; CRISIS; IMPACT; RATES Multiple languages Business, Finance; Economics Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/34341