Dissertation > Economic > Fiscal, monetary > Currency > Monetary theory

Research on the Theory and Practice of the Quantity Easing Policy

Author ZengHong
Tutor YuJieFang
School Zhejiang University
Course Finance
Keywords Quantitative easing monetary policy Theory Practice Japan United States
CLC F820
Type Master's thesis
Year 2010
Downloads 1055
Quotes 11
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Quantitative easing monetary policy (Quantity Easing Policy, QEP), was born in March 2001 the Bank of Japan's monetary policy, practice, and the crisis is only effective against crisis policy operations. Facing extreme constraint of zero interest rate policy, combined with the pre-conventional monetary policy had no significant effect, the world's major economies, led by the United States entered the orbit of quantitative easing monetary policy almost coherent. Based on existing research, quantitative easing monetary policy relative system based on the combination of theory and practice, history and reality. Post operation analysis of quantitative easing monetary policy operations, starting from the theory of monetary policy transmission mechanism and the difference between the traditional loose monetary policy to, effective way analysis of quantitative easing monetary policy operations conducted to the financial markets and the real economy from a theoretical point of view. Theoretical analysis based on the practice of quantitative easing monetary policy analysis, the first analysis of the 2001-2006 Japanese quantitative easing monetary policy operations practice, the implementation of the results as well as the formation of the experience of enlightenment, based on comparison of the financial crisis in the United States , Japan, the euro area, as well as the UK and other major economies, the quantitative easing monetary policy, practice analysis, including the policy practical implementation effects, grasp the major economies in the current global quantitative easing monetary policy through a comparative analysis of the historical experience of Japan. Combination of theory and practice analysis, quantitative easing monetary policy for the world's major economies, the implementation of the summary evaluation, also made a number of follow-up thinking. This article form the view that: first, the quantitative easing monetary policy to financial stability as the goal, and at the same time concerned about the multidimensional economic variables, there are theoretical policy transmission path, are low interest rates is expected to be guided by the interest rate transmission channel, the conductivity of the non-monetary assets relative price Drainage, weak balance sheet channel, formed with the fiscal policy fiscal spending expansion channels. Second, quantitative easing monetary policy out of the crisis is essential, and a significant role. A major role: for the global economy to create a loose monetary policy environment; guide the formation of long-term low interest rates are expected to reshape related body confidence and stabilize the financial system; ease deflation, the start of the global economic recovery. Third, the quantitative easing monetary policy is not fully effective, it also brings new risks. The main question is: has failed to effectively improve the financing function of the credit markets, monetary policy transmission \; the long-term increase in global money supply, the formation of inflation expectations, and late quantitative tightening the asymmetric effect may be planted for the next round of crisis risk foreshadowing.

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