Such effects are compatible with a situation in which financial markets learn over time the implications of the central bank’s asset purchases, or in which such purchases trigger changes in local liquidity conditions. A related distinction across those model assessments is how this expected future path of asset purchases is mapped into the macroeconomy.
Many of these models include directly the quantity of central bank asset purchases, and embed mechanisms that allow the transmission of purchases to the economy and inflation. The remainder of the models indirectly back out the effect of asset purchases on the economy on the basis of a two-step approach.