Fifty Shades of QE: Robust Evidence National Institute of Economic and Social Research
19 September 2023
Therefore, Weale and Wieladek (2022)'s rejection of the normality of the residuals in some of FJKP's OLS regressions does not invalidate the OLS estimates or the inference about them. [...] In our context, we show that papers reporting large effects of QE are important in forming the perception of the effectiveness of QE among academics, policy makers, and the general public. [...] Both studies are written by central bankers---one by a member of the Bank of England's Monetary Policy Committee and one by the president of the San Francisco Fed. [...] Another article in the Financial Times (2017) suggests that the findings from one of the outlier studies, which was also cited prominently by Janet Yellen, were “near the consensus of Fed thinking on the subject'' at the time. [...] We do not find it desirable to put less weight on estimates from influential papers that have impacted the perception of the effectiveness of QE in the eyes of top central bank officials and the general public.