The Impact Of US Out Of Quantitative Easing Policy On Chinese Economy

Since 2008 the global financial crisis, Europe and other developed countries into a period of economic downturn. In order to come out as soon as possible from the economic downturn, the Fed introduced the quantitative easing policy, substantial start printing money to the global capital markets have entered a lot of liquidity. In recent years, as the US economic recovery, the Fed is on the international status of the country’s inflation and dollar considerations, began to gradually withdraw quantitative easing, absorb excess liquidity, return to conventional monetary policy in the past. As the world’s largest economies, the United States ended a six-year quantitative easing policy process must bring a variety of uncertainties that will undoubtedly present complex and volatile international financial situation a certain impact to the world on the other countries, especially emerging market countries, internal economic shock caused by severe, the United States and China, as the first creditor is bound to be influenced, so the impact is positive or negative, how much the impact will be generated, which became hotspot.Firstly, the study of quantitative easing exit summarized mainly analyzed quantitative easing theory and spillover effects on other countries and to exit quantitative easing path in and out of the process on the emerging market countries of the main points of QE exit in the overall situation, a general understanding. Secondly, the use of US data in recent years, detailing the background and exit quantitative easing steps from the impact on the domestic economy and the international economy are two aspects to analyze its effectiveness. Again, introduced outside overflow mechanism of monetary policy, the United States withdraw QE impact on China’s economy is divided into channels of trade, capital flows and monetary policy categories, followed by the establishment of a VAR model, impulse response function and variance decomposition and grid Granger causality test methods were tested in different channels on the US withdrawal from the impact of quantitative easing on China’s economy, empirical interpretation of the results and draw the appropriate conclusions. Analysis concluded that in the United States to end quantitative easing trade channels, the overall import to China has promoted; capital flow channels in the United States on ending quantitative easing, suppression of international capital flows China’s market; monetary policy channels in the United States end of quantitative easing, is expected to lead to deflation, affect the independence of monetary policy. Finally, according to the results of theoretical analysis and empirical analysis, we targeted to make a few suggestions for how to effectively counter the impact of the US economy to exit quantitative easing policy to provide reasonable reference.