Research On The Spillover Effects Of The Fed’s Quantitative Easing Monetary Policy

As financial crisis sweeps the whole world in 2008, the economy of many developed countries like the United States, lands into serious stagnation and recession.In order to save the market, restore credit and stabilize the financial system,the fed have launched four rounds of quantitative easing monetary policy.By implementing expansionary monetary policy, such as buying treasury bonds and long-term financial bonds,it have injected continuously liquidity into the market,improve the credit expectation and counteract the recession.However, under the background that interdependence of economy among nations has been gradually strengthened in the world, long-time massive monetary expansion is bound to generate obvious spillover effects on a global scale,due to the core role of the United States in the world monetary system. So the research on implementation and its spillover effects of the fed’s quantitative easing monetary policy has a great theoretical and practical significance.Firstly, looking from the existing literature, this paper sorts out the theory of the fed’s quantitative easing monetary policy and the spillover effects of monetary policy; Secondly, it explains separately the meaning of the traditional monetary policy and the quantitative easing monetary policy from the perspective of theory, compares the similarities and differences between the two, and on this basis, study the internal transmission mechanism and spillover effect of the quantitative easing monetary policy;Thirdly, this paper introduces the background, implementation, the specific strategies and operating tools of exit process for the fed’s four rounds of quantitative easing monetary policy; Finally, this paper analyzes the spillover effects of the quantitative easing monetary policy on the world economy and financial markets, and expounds the influences of the quantitative easing monetary policy on our country from four aspects as follows: the RMB exchange rate, the inflation, the foreign exchange reserves and the export trade, then introduce China’s central bank response to the changes in economic and financial situations both at home and abroad in detail in the implementation and exit process of the fed’s quantitative easing monetary policy.