The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
We compare the effectiveness of Federal Reserve's asset purchase programs in lowering longterm
yields with that of similar programs implemented by the Bank of England, the Swedish
Riksbank, and the Swiss National Bank's reserve expansion program. We decompose
government bond yields into (i) an expectations component, (ii) a global, and (iii) a country
specific term premium to analyze two-day changes in 10-year yields around announcement
dates. We find that, in contrast to the Federal Reserve's asset purchases, the programs
implemented in these smaller economies have not been able to affect the global term premium
and, furthermore, they have had limited, but significant, effect in lowering long-term yields.