An Analysis of the U.S. Quantitative Easing Policy

• Main Authors: Shu-Yi Lee, 李書頤
• Other Authors: Shun-Yo Liao
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/t5u99f

碩士 === 國立中興大學 === 國際政治研究所 === 106 === American Subprime Mortgage Crisis broke out in 2007 which contributed to a massive global financial storm. It not only stoked the US economy, but also affected Europe, Asia and other emerging countries, causing a global economic recession for many years. In response to this crisis, the US adopted the "Quantitative Easing Monetary Policy (QE)" in 2008. From Nov. 2008 to Oct. 2018, the Fed implemented three rounds of QE and releasing a total of 3.955 trillion US dollars to the market. The purpose of this study is to prove that the US quantitative easing was effective and successfully saved the US domestic economy. The data is based on the three overall economic indicators announced by the National Development Committee of the Executive Yuan, combined with the Fed announcements, and articles by American scholars Da Costa, Pedro Nicolaci, Labonte, and Marc. The empirical test criteria are as follows: 1. Unemployment rate: below 5.9%, 2. Economic growth rate: 3% or more, 3. Inflation rate: 2%. The results of the study show that the US quantitative easing monetary policy: 1.Effectively reduced the unemployment rate; 2.Effectively improved the economic growth rate; 3.Effectively maintained the inflation rate, however, it did not achieve the ideal goal of 3%. In summary, to sum up the empirical results, the US quantitative easing monetary policy was effective.