Supply and demand shifts of shorts before Fed announcements during QE1–QE3

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 200
Issue: C

Authors (3)

McInish, Thomas (not in RePEc) Neely, Christopher J. (Federal Reserve Bank of St. Lo...) Planchon, Jade (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Cohen et al. (2007), find that shifts in the demand curve for shorting predict negative stock returns. We use their approach to examine supply and demand changes at the time of the Federal Open Market Committee (FOMC) announcements. We show that shifts in the demand for borrowing Treasuries and agencies predict quantitative easing (QE). A reduction in the quantity demanded at all points along the demand curve predicts expansionary QE announcements.

Technical Details

RePEc Handle
repec:eee:ecolet:v:200:y:2021:i:c:s016517652030478x
Journal Field
General
Author Count
3
Added to Database
2026-01-26