After the crisis there is a growing need of coordination of economic policies in order to reduce instability and uncertainty. Several international fora can coexist and usefully complement each other.
Experience with large-scale asset purchase programmes in other jurisdictions shows that the portfolio balance channel works. For instance, model-based estimates show that as a consequence of the Bank of England’s quantitative easing programme, insurance companies and pension funds invested less in gilts and more in corporate bonds, 1 leading to price increases of both investment grade and non-investment grade corporate bonds.