| This paper studies the impact of the Fed's unconventional monetary policy on the U.S. economy from the beginning of the financial crisis to the time that the Fed raised the federal funds rate. First of all, the paper reviews the development of the theory model of monetary policy transmission mechanism, and establishes the analytical framework of the full text. The Fed regulates financial markets and the real economy by changing the overall size of its balance sheet and the types of its accounts, and also solves the problem of financial intermediation market disturbance and credit spreads caused by agency problems, to avoid the "financial accelerator effect". The mechanism of the unconventional monetary policy is that, first, the expansion of the central bank balance sheet can offset the contraction of the private sectors' balance sheet and solve the financing problems of financial institutions and their credit intermediary roles in the process of loan capital flow. Second, it can support specific industries and asset prices, reducing the risk premium and liquidity premium of non-monetary assets, and then change investors' portfolio. Third, the Fed can do forward-looking guidance, guiding people to form an expectation of low long-term interest rate. People will conduct a variety of investment and consumption activities, so as to promote the recovery and development of the real economy. Secondly, this paper makes a statistical analysis of the economic data of the United States after the financial crisis. At last, through the empirical test of the FAVAR model I found that the balance sheet size and interest rate policy have the relationship of mutual promotion.The policy's effect on financial market is significant, however, there is no significant effect on the adjustment of real economic indicators.And the monetary policy needs the fiscal policy to cooperate with, therecoveryof the real economy is muchslower than the financial market. |
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