1. Joint Committee on Finance Public Expenditure and Reform July 8 2015 Quantitative Easing Does it work and what are the risks? Dan O’Brien Chief Economist Institute of International and European Affairs

2. Does it work?

3. IMF assessment of QE* well reflects the degree of uncertainty over its effects “Appear[s] to have boosted growth and prevented deflation, although these effects are difficult to measure”. “The biggest obstacle to obtaining a clear view of the effects on growth and inflation is establishing the proper counterfactual”. “Despite this caveat, the empirical findings to date support the view that both GDP growth and inflation were raised by bond purchases”. “GLOBAL IMPACT AND CHALLENGES OF UNCONVENTIONAL MONETARY POLICIES, IMF October 2013

4. QE: Not so big in Japan

5. Resort to QE early in the crisis appears to have helped growth…

6. …but impact on consumer price inflation is (even) less clear

7. Risks and downsides

8. Asset price inflation

9. Thank you. dan.obrien@iiea.com Twitter @danobrien20