The authors examine the experience of selected central banks that have used large-scale balance-sheet expansion, frequently referred to as "quantitative easing," as a monetary policy instrument.
A dilemma faced by forecasters is that data are not all sampled at the same frequency. Most macroeconomic data are sampled monthly (e.g., employment) or quarterly (e.g., GDP). Most financial variables (e.g., interest rates and asset prices), on the other hand, are sampled daily or even more frequently. The challenge is how to best use available data.