Has Quantitative Easing Affected the Predictive Power of the Yield Curve? Evidence from Nine Advanced Economies
Since the global financial crisis in 2007-2008 several central banks around the world have introduced Quantitative Easing. Earlier literature has proven that this has caused significant downward pressure on yields in many economies. This study examines if the introduction of Quantitative Easing has changed the predictive power of the yield curve on future economic activity in nine advanced economi