TY - BOOK ID - 137321075 TI - Inspecting the Mechanism of Quantitative Easing in the Euro Area AU - Koijen, Ralph S. J. AU - Koulischer, Francois. AU - Nguyen, Benoit. AU - Yogo, Motohiro. AU - National Bureau of Economic Research. PY - 2019 PB - Cambridge, Mass. National Bureau of Economic Research DB - UniCat UR - https://www.unicat.be/uniCat?func=search&query=sysid:137321075 AB - Using security-level holdings for all euro-area investors, we study portfolio rebalancing during the quantitative easing program from March 2015 to December 2017. Foreign investors outside the euro area accommodated most of the Eurosystem's purchases. Duration, government credit, and corporate credit risk did not get concentrated in particular regions or investor sectors. We estimate a demand system for government bonds by instrumental variables to relate portfolio rebalancing to yield changes. Government bond yields decreased by 65 basis points on average, and this estimate varies from 38 to 83 basis points across countries. ER -