More from the Author

• Article | Review of Economic Studies | May 2020

  How Quantitative Easing Works: Evidence on the Refinancing Channel

  Marco Di Maggio, Amir Kermani and Christopher Palmer

  We document the transmission of large-scale asset purchases by the Federal Reserve to the real economy using rich borrower-linked mortgage-market data and an identification strategy based on mortgage market segmentation. We find that central bank QE1 MBS purchases substantially increased refinancing activity, reduced interest payments for refinancing households, led to a boom in equity extraction, and increased aggregate consumption. Relative to QE-ineligible jumbo mortgages, QE-eligible conforming mortgage interest rates fell by an additional 40 bp and refinancing volumes increased by an additional 56% during QE1. We estimate that households refinancing during QE1 increased their durable consumption by 12%. Our results highlight that the transmission of unconventional monetary policy to the real economy depends crucially on the composition of assets purchased and the degree of segmentation in the market.

  Keywords: monetary policy; MBS; quantitative easing; LSAP; refinancing; deleveraging; HARP; GSE; Central Banking; Global Range; Financing and Loans; Credit; United States;

  Citation:

  Di Maggio, Marco, Amir Kermani, and Christopher Palmer. "How Quantitative Easing Works: Evidence on the Refinancing Channel." Review of Economic Studies 87, no. 3 (May 2020): 1498–1528.  View Details

  CiteView DetailsSSRNFind at Harvard

  Related

• Case | HBS Case Collection | August 2019 (Revised April 2020)

  BlueVine Capital: Growth Factors

  Marco Di Maggio and Nathaniel Schwalb

  The start-up, BlueVine Capital Inc. (BlueVine), used data and technology to help finance small businesses via factoring and lines of credit. The case explains the small business financing market in mid-2010s, how CEO Eyal Lifshitz identified the opportunity for BlueVine, and how he built the company through its first five years of operations. Through the case, Lifshitz and his team discover insights about their small business customers that inspire them to change their product portfolio. In December 2018, Lifshitz must decide which new products to launch next.

  Keywords: fintech; Business Startups; Small Business; Financing and Loans; Innovation Leadership; Strategy; Financial Services Industry; Technology Industry;

  Citation:

  Di Maggio, Marco, and Nathaniel Schwalb. "BlueVine Capital: Growth Factors." Harvard Business School Case 220-006, August 2019. (Revised April 2020.)  View Details

  CiteView DetailsEducatorsPurchase

  Related

• Case | HBS Case Collection | April 2020

  Ment.io: Knowledge Analytics for Team Decision Making

  Yael Grushka-Cockayne, Jeffrey T. Polzer, Susie L. Ma and Shlomi Pasternak

  Ment.io was a software platform that used proprietary data analytics technology to help organizations make informed and transparent decisions based on team input. Ment was born out of founder Joab Rosenberg’s frustration that, while organizations collected ever increasing amounts of data, the information gathering process did not capture human insights, which he viewed as critical to the use of the data. In early 2020, Rosenberg felt that the company he had started five years ago was taking off, but he wondered how to manage the team’s limited engineering resources to help Ment stand out in a crowded software market. Should the company improve Ment’s user interface, develop new features, or focus on its innovative algorithm?

  Keywords: Decision Making; Technology; Knowledge; Knowledge Acquisition; Knowledge Management; Operations; Information Management; Product; Product Development; Entrepreneurship; Business Startups; Communications Industry; Information Industry; Information Technology Industry; Web Services Industry; Middle East; Israel;

  Citation:

  Grushka-Cockayne, Yael, Jeffrey T. Polzer, Susie L. Ma, and Shlomi Pasternak. "Ment.io: Knowledge Analytics for Team Decision Making." Harvard Business School Case 420-078, April 2020.  View Details

  CiteView DetailsEducators

  Related