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Mr Stein sought to explore precisely how bond purchases stimulate economic growth.
The Fed has been buying bonds to stimulate the American economy.
The southern EU countries, instead of leaving prices unchanged, could abandon austerity and issue an ever greater volume of new bonds to stimulate the economy.
Under its current charter, the central bank faces more restrictions on its ability to buy government bonds and stimulate the economy than the Federal Reserve does.
The rally intensified after Ben Bernanke, the Fed's chairman, hinted that the central bank might buy long-dated Treasury and mortgage bonds to stimulate demand.
There are two ideas behind the Bank buying the bonds: to stimulate economic demand by encouraging the banks and financial institutions selling the gilts to use the proceeds to boost lending to households and businesses or invest in other assets; and to force down the cost of borrowing for the government by increasing demand for bonds, thus increasing their price.
Optimism about a solution to the debt crisis rose Thursday after Mario Draghi, the president of the E.C.B., made comments that were widely interpreted as opening the door to a European version of quantitative easing — huge purchases of government bonds to stimulate bank lending and growth.
Policymakers at the European Central Bank have already cut interest rates to 0.05% and are now expected to start buying government bonds to stimulate the eurozone economy.
The report is one of the few readable attempts to measure the distribution effects -- positive and negative -- of the unconventional "quantitative easing" policy of central banks buying bonds to stimulate economies and keep interest rates unusually low for long periods.
But that seems out of the question, and BOJ Governor Masaru Hayami Masaru Hayami has already indicated that quantitative easing whereby the bank would buy bonds to stimulate the economy a reduction in interest rates and measures to directly support stocks have been ruled out.
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