US Quantitative Easing Monetary Policy Measures And Enlightenment Exit

Since the global financial crisis, a sharp deterioration in the USeconomy, financial markets suffered heavy losses, most financialinstitutions on the verge of bankruptcies, unemployment levels remainhigh, the financial market meltdown, and traditional monetary policy inthe face of huge budget deficit pressures and low interest rate policycan not function properly, can not effectively save the city. Faced withthis crisis, the Fed in more than five years thereafter, a total of fourrounds in a row to start the implementation of quantitative easingmonetary policy. Implementation of this monetary policy, for a lot ofliquidity into the market to ease the liquidity trap, unemployment levelsbegin to decline in the job market situation is getting warmer, theemployment rate level has been significantly improved, the deteriorationof the situation of the balance sheet can be repaired. Fed four roundsof quantitative easing monetary policy to stimulate a recovery infinancial markets, to boost the economy, they can bring the variousindicators of economic data is getting better, the economy continuedsteady recovery in the US is an effective policy instruments to achievesteady economic recovery in full. This paper analyzes the gradual Fedquantitative easing monetary policy exit strategy focus of concern, suchas the timing of exit, exit index selection, exit the tool and exit stepsin the process of internal and external exit pressure dual constraints,then adjust to China’s monetary policy provide practical reference for our country to determine the direction of monetary policy and stabledevelopment of the global economy has important reference.The main contents are as follows: First, the Fed’s quantitative easingmonetary policy measure and determine the timing of exit, explained theimportance of the timing of exit.If the Fed’s exit prematurelyquantitative easing monetary policy, devoid of economic recovery willbring results, to a large extent will make the economic situationdeteriorated again, bringing all kinds of incalculable risks and losses,resulting in double-dip recession, economic crisis in the future.Conversely, if too late to implement exit quantitative easing monetarypolicy, it caused a huge liquidity can not recover in time, will triggera new round of large-scale inflation, lead to asset price bubble risk,rationalization of exit timing critical judgment and choice. Second,summed up the previous US quantitative easing monetary policy out of thetiming of the QE exit timing indicators to determine and select foranalysis, the main consideration is the unemployment rate, inflation rateand steady economic recovery. Third, summed up the Fed’s quantitativeeasing monetary policy exit strategy in selecting three tools, namely,open market operations, to raise the deposit reserve rate, raise thefederal funds rate and the discount rate. But concluded that: the use ofconditions and the desired results are often subject to appropriateconstraints tool, it should be flexible and timely manner according tothe economic transformation and adjustment to market conditions, in orderto ensure that the quantitative easing monetary policy steady and orderlyexit. But concluded that: the use of conditions and the desired resultsare often subject to appropriate constraints tool, it should be flexibleand timely manner according to the economic transformation and adjustmentto market conditions, in order to ensure that the quantitative easingmonetary policy steady and orderly exit. Fourthly, analyzed and discussed the US quantitative easing monetary policy arrangements and predictedexit steps, quantification exit process is gradual easing of monetarypolicy, namely the exit steps can be taken to reduce the automaticcontraction phase and active phases go step by step mechanism, includingits short-term liquidity automatic contraction phase, local fine-tuningphase of monetary policy, the Federal funds rate and the discount rateincrease that voluntary withdrawal phase. Fifth, the analysis of the USquantitative easing monetary policy out of internal and external processsuffered dual constraints, including the budget deficit pressures, theemployment rate of pressure with its own monetary policy tools constraint,these constraints will clarify the Fed’s exit decisions and how to processan additional dilemma barriers predicament, the US quantitative easingmonetary policy of unilateral withdrawal is not the result of the Fed’spolicy-making and implementation can. Sixth, the above series of studiespresented on China to adjust monetary policy measures and thinkingcontent.Fed’s quantitative easing monetary policy can be said to be anunprecedented nature of monetary policy experiments, its impact on theglobal economic and financial market is huge and far-reaching, not onlyfor our country and other countries have provided a lot of inspiration,resulting theoretical guidance, and in the history of mankind and theworld. evolution of monetary policy history, the history of the bank hasplayed a profound significance unprecedented. China, as the world’ssecond-largest economy in the face of complex world economic situationand the US quantitative easing monetary policy to exit the impact shouldbe calm and sober strengthen anticipation, Duocuobingju comprehensivegrasp of domestic and international macroeconomic change, innovation andscience of monetary policy tools, flexible use of macro-control policies,looking concerned about long-term goals, learn the lessons of history, efforts to ensure the healthy and orderly development of its economy, tostabilize the situation in the world economy.