A Study On The Effects Of American Quantitative Easing Monetary Policy

The global economy has suffered heavy losses because of the financial crisis in2008,in order to prevent the crisis for a further deepening and to stimulate economicrecovery, the central banks of severely damaged countries such as America, Britainand Japan are trying to take the unconventional monetary policy immediately, such ascommitment, to adjust the size of the central bank balance sheets and/or structure,etc.,after the failure of traditional monetary policy tools, and have different effects. Muchattention has been paid to the quantitative easing monetary policy, especially theUnited States’s.This paper summarizes the research of domestic and foreign scholars aboutquantitative easing monetary policy, and do a comprehensive study on the quantitativeeasing monetary policy rationale, the conduction mechanisms and effects. Amongthem, the paper uses a variety of measurement like unit root test, co-integration test,causality test, VAR models to examine the effects of quantitative easing monetarypolicy. The empirical results show: First, the U.S. quantitative easing monetarypolicy by expanding the money supply has raised the price and output, and promoteeconomic recovery. Therefore, the U.S. quantitative easing monetary policy to dealwith the financial crisis in general is effective; Second, the promotion of employmentof the U.S. quantitative easing monetary policy is effective, but because most ofliquidity flew into the virtual economy,and to chase the appreciation of theassets.Therefore, the U.S. quantitative easing monetary policy has little effect on thereal economy, so the employment effect is not very obvious. Finally combined withthe practice effect and the empirical results of the effect, in this paper, theenlightenment of the quantitative easing monetary policy to China are discussed, andputs forward countermeasures that China can adopt to reduce the negative impact ofthe U.S. quantitative easing monetary policy...