Real effects of risk easing by the Federal Reserve

Research output: Contribution to book/anthology/report/conference proceedingArticle in proceedingResearchpeer-review


The recent large-scale asset purchases by the Federal Reserve effectively transferred risk from the private sector to the Federal Reserve's balance sheet.
I estimate the economy-wide real effects of this risk easing using a large-dimensional dynamic factor model and demontrate empirically that the roughly USD 2 trillion purchases of mortgage backed securities by the Federal Reserve Bank during the recent crisis avoided a severe downturn according to estimates from a counterfactual analysis.
Original languageEnglish
Title of host publicationCEPR conference on unconventional monetary policy, UPF Barcelona
Number of pages57
Publication dateMay 2018
Publication statusPublished - May 2018
EventCEPR conference - Pompeu Fabra University, Barcelona, Spain
Duration: 27 Apr 201828 Apr 2018


ConferenceCEPR conference
LocationPompeu Fabra University
Internet address


  • unconventional monetary policy
  • zero lower bound
  • large cross-sections
  • dynamic factor model
  • factor-augmented vector autoregression
  • ExpectationMaximization algorithm


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