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Does Quantitative Easing Boost Bank Lending to the Real Economy or Cause other Bank Asset Reallocation? (BoE, 32 page read) During the 2009 financial crisis, banks received reserves injections through the BoE asset purchase program. There is no evidence this QE program had a positive impact. Instead, banks appear to have reacted by shifting portfolios into high-yielding assets with low risk weights (government securities). This suggests using alternative credit easing tools in future. [Bullish credit]
Bank Reserves and Broad Money in the Global Financial Crisis: A Quantitative Evaluation (ECB, 23 page read) Had the Fed has not initiated an unprecedented expansion of bank reserve during the global financial crisis, broad money would have fallen. This could have led to a deeper contraction and a more protracted recovery. This is because reserves can reduce the cost of providing loans.
The Role of IMF Conditionality for Central Bank Independence (ECB, 29 page read) During times of financial turbulence, many governments have no option but to turn to the IMF. Their loans frequently entail central bank independence conditionality clauses, which lead to higher levels of CBI and produce important second round economic policy effects.