The impact of American Quantitative Easing Monetary Policy on Taiwan,s Stock Market- On Monetary transmission

• Main Authors: Ching Hua Chen, 陳慶華
• Other Authors: 陳碧綉
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/x3h986

碩士 === 東吳大學 === 經濟學系 === 102 === Due to the financial tsunami in 2008, the United States continued implementation of quantitative easing(QE) monetary policy. When the United States continued to carry out the quantitative easing monetary policy, hot money flowed to other countries which included Taiwan. This study is divided into two parts: First it uses Event Study methodology to study the effects of quantitative easing money policy on the stocks of the Taiwan 50, financial institutions and construction companies. It tries to measure whether QE generated significant abnormal returns in Taiwan stock market? The second part examines whether hot money inflows will affect macroeconomic variables in Taiwan. The empirical results show that based on event study, the average cumulative standardization of stocks abnormal returns (SCAR) of American,s QE do have short-term effects on Taiwan's stocks. For macroeconomic variables in Taiwan, hot money flows into the stock market through exchange rate channel and affecting the stock price. In short-term hot money flows into Taiwan's stock market and causes significant effects on macroeconomic variables. In long-term, due to the sterilization of central bank the impacts on macroeconomic variables are not significant.