Case 2: Quantitative Easingin the Great Recession

In analyzing the economic and financial market impacts of the QE announcements, what are the probable reasons for the changes in behavior of:

• short-term rates and long-term rates,
• credit default swaps, and
• inflation expectations.

This question is asking for reasons, not a summary of the changes in the Tables. For example, 10 year Treasury yields declined 107 basis points in QE1. Why?