Study Of Influence Of Quantitative Easing Monetary Policy To The Trade Balance Between China And U.S.A

The trade between the China and the U.S.A started in1979, and China has alwaysbeen in deficit position before1993,since1993, the surplus began to appear in China,and has maintained high growth in the nearly20years so far. Bilateral trade balance hasalready increased from62.8billion dollars in1993to1812.6billion dollars in2010. ByAugust2011, China and the United States have been the second largest trading partnersbetween each other and China is the third largest export market and the first biggestsource of import of America.In2008, the global erupted financial crisis caused by America. The United Statesissued two successive "quantitative easing" monetary policy in response to the crisiscaused by the recession. One of the purposes of the policy is to depreciate dollar andoppress the upvaluation of RMB, thereby to create favorable conditions for Americanexports. The purpose of this paper is to study the actual effect that Americanquantitative looser monetary policy influenced on the balance of trade between Chinaand America.This thesis is divided into three parts, the first part is for the first chapter, that is theintroduction. The second part is for the body, that is from the second chapter to the sixthchapter. The third part is for the conclusion.The first chapter is for the introduction, which introduced the background, researchmethod, theoretical basis and innovations.The second chapter mainly introduced the formation and reasons of the balancebetween China and America, including the impact to the two countries.The third chapter presented the implementation background, content and impactsto America and world economy of "quantitative easing" monetary policy in the UnitedStates.The fourth chapter is specifically analytical section, which described thetransmission mechanism of "quantitative easing" monetary policy to the difference of trade between China and America.The fifth chapter is empirical parts, which mainly empirically analyzed theinfluence of China to American amount of import and export from the aspects of theexchange rate caused by "quantitative easing" monetary policy, American GDP and FDIof the United States to China.The sixth chapter respectively put forward the countermeasures to both China andthe United States for the healthy development between the two countries.The third part of the paper is the conclusion. Through the research that in thisthesis we conclude that, there have no long-term stable relationship existsbetween”Quantitative easing” monetary policy and Sino-US trade balance. Therefore,U.S. implementation of "quantitative easing" monetary policy will not help to improvethe status of the U.S. trade deficit with China.