Case Study On Quantitative Easing Monetary Policy

Since the 1930 s, Keynes proposed a "liquidity trap" hypothesis since the choice of monetary policy under the constraint of the zero lower bound is always a very important issue theory of monetary economics and central bank monetary policy-making process to consider. With the continuous development of financial innovation in the monetary nature of growing, leading to the core of the monetary policy framework steering interest rates, making the problem even more was highlighted after the 2007 subprime crisis, to study the issue more is reached a peak research. Throughout history, monetary policy under the zero interest rate bound select few cases, only that Japan can complete discussion. Japan in the early 1990 s, the collapse of the bubble economy, the economy entered a recession, the macro-economic indicators had declined significantly, the Bank of Japan gradually adopted a loose monetary policy, in February 1999, the overnight lending rate decreased to 0.16%, which in theory has entered the zero lower bound constraint area, based on this situation, the Bank of Japan in early 2000 introduced unconventional monetary policy, after five years, macroeconomic indicators in Japan there have been varying degrees of improvement, unconventional monetary policy on economic recovery played a certain role.In this paper, the Japanese crisis of the 1990 s as the background, the face validity of the zero lower bound constraint implemented by traditional and non-traditional monetary policy. According to the traditional AD-AS model, the role of non-traditional monetary policy is expected to judgment, but in the actual operation, the non-traditional monetary policy did not achieve its desired effect, so from the monetary policy transmission mechanism as a starting point, the analysis Non-traditional monetary policy that may arise in the process of conduction problem, so try to find links incomplete conduction, and on this basis for the future implementation of non-traditional monetary policy to ease the crisis, put forward valuable experience and learn from.This paper is divided into four chapters. The first chapter is an introduction; The second chapter is on the Japanese crisis of the 1990 s and summary description of the main analysis of traditional and non-traditional monetary policy implemented by the crisis; the third chapter of the implementation of monetary policy occurred during the specific analysis of the problem; the fourth chapter is the revelation of Japan implemented a number of loose monetary policy, monetary policy is mainly implemented in the US and the euro zone crisis in the analyzes.