A Literature Study for the Spillovers of Quantitative Easing

Research Article
Open access

A Literature Study for the Spillovers of Quantitative Easing

Sirui Wang 1*
  • 1 Nankai University    
  • *corresponding author 2011195@mail.nankai.edu.cn
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/22/20230333
AEMPS Vol.22
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-87-4
ISBN (Online): 978-1-915371-88-1

Abstract

Quantitative easing, as an unconventional monetary policy, was often adopted by major central banks after the 2008 financial crisis. Different from the conventional monetary policy, that is, the central bank injects liquidity into the financial market by adjusting the benchmark interest rate and open market operations, the core of quantitative easing is to increase the balance sheet of banks in the short term through asset purchases and other behaviors to achieve the purpose of stimulating the economy. From 2008 to 2020, the United States adopted five quantitative easing policies to deal with economic downturn risks. While alleviating its own economic recession, it also had a strong spillover effect on China and other countries. Although quantitative easing has alleviated the economic crisis in the United States in practice, it has had an adverse impact on the entire world economy, making the whole world bear the consequences of the economic crisis together. This article summarizes scholars' research on the role, effectiveness, and spillover effects of quantitative easing policies, and summarizes the factors that affect the size of the spillover effects. Finally, through the analysis of the international transmission theory and transmission channels of inflation, it explores the impact of the US quantitative easing policy on China's inflation rate.

Keywords:

quantitative easing policy, spillover effect, inflation

Wang,S. (2023). A Literature Study for the Spillovers of Quantitative Easing. Advances in Economics, Management and Political Sciences,22,372-377.
Export citation

References

[1]. Borio, C., & Disyatat, P.: Unconventional Monetary Policies: An Appraisal. Social Science Research Network (2009).

[2]. Krugman, P., Dominquez, M., & Rogoff, K.: It’s Baaack: Japan’s Slump and the Return of the Liquidity Trap. Brookings Papers on Economic Activity, 29(2), 137 (1998).

[3]. Joyce, A., Tong, H., & Woods, J.: The United Kingdom’s quantitative easing policy: design, operation and impact. Bank of England Quarterly Bulletin, 51(3), 200–212 (2011).

[4]. Lima, C., & Cracau, D.: The Pacific Alliance and its economic impact on regional trade and investment: Evaluation and perspectives. RePEc: Research Papers in Economics (2016).

[5]. Zhang, Y., Hu, X.: Optimal monetary policy framework in macroprudential perspective. Financial Research, 5, 30-40 (2010).

[6]. Lu, X.: A comparative analysis of the characteristics, effects and impacts of quantitative easing policies in the euro area and the United States. International Financial Studies, 4, 45-51 (2015).

[7]. Slacalek, J., Lenza, M.: Quantitative easing did not increase inequality in the euro area. Research Bulletin, 54 (2019).

[8]. Xu, H., Zhang, J.: Re-examination of the effectiveness and transmission mechanism of quantitative easing monetary policy in the United States. Statistics and Decision Making, 36(19), 136-140 (2020).

[9]. Blanchard, F., Flint, D.: The Geopolitics of China’s Maritime Silk Road Initiative. Geopolitics, 22(2), 223–245 (2017).

[10]. Powell, M.: Journal of Brand Management: year end review 2018. Journal of Brand Management, 25(6), 494–499 (2018).

[11]. Bartkiewicz, P.: The Impact of Quantitative Easing on Emerging Markets – Literature Review. E-Finanse (2018).

[12]. Du, J., Cao, Y.: A time-varying study on the impact of U.S. monetary policy on China's economy. Economic Vertical, 10, 101-109 (2019).

[13]. Jin, X., Cao, Y.: A review of research on quantitative easing monetary policy. Zhejiang Social Science, 11, 143-150+161 (2016).

[14]. Bowman et al.: Assessment of the validity of reviewed studies. ResearchGate (2014).

[15]. Mishra, P.: Railway Budget 2014-15: Analysis, eSocialSciences (2014).

[16]. Axel, H.: An integrative taxonomic approach to resolving some difficult questions in the Larentiinae of the Mediterranean region, Lepidoptera, Geometridae (2013).

[17]. Luo, B., Shen, Z., Chang, H.: Reflections on the current inflation in China. Financial Theory and Practice, 2, 58-61 (2011).

[18]. Ding, L., Sun, X.: The dynamic impact of U.S. quantitative easing monetary policy on China's inflation. Financial Development Research, 9, 46-50 (2012).

[19]. Hu, Y., Zuo, L.: Does the implementation of negative nominal interest rate policy really work? Based on data from Japan and insights. Jiangxi Social Science, 42(07), 66-76 (2022).

[20]. Yu, S., Zheng, Z.: Study on the spillover effect of U.S. quantitative easing policy on China's economy. Journal of Southeast University (Philosophy and Social Science Edition), 15(05), 55-60+135 (2013).

Cite this article

Wang,S. (2023). A Literature Study for the Spillovers of Quantitative Easing. Advances in Economics, Management and Political Sciences,22,372-377.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN：978-1-915371-87-4(Print) / 978-1-915371-88-1(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.22
ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Borio, C., & Disyatat, P.: Unconventional Monetary Policies: An Appraisal. Social Science Research Network (2009).

[2]. Krugman, P., Dominquez, M., & Rogoff, K.: It’s Baaack: Japan’s Slump and the Return of the Liquidity Trap. Brookings Papers on Economic Activity, 29(2), 137 (1998).

[3]. Joyce, A., Tong, H., & Woods, J.: The United Kingdom’s quantitative easing policy: design, operation and impact. Bank of England Quarterly Bulletin, 51(3), 200–212 (2011).

[4]. Lima, C., & Cracau, D.: The Pacific Alliance and its economic impact on regional trade and investment: Evaluation and perspectives. RePEc: Research Papers in Economics (2016).

[5]. Zhang, Y., Hu, X.: Optimal monetary policy framework in macroprudential perspective. Financial Research, 5, 30-40 (2010).

[6]. Lu, X.: A comparative analysis of the characteristics, effects and impacts of quantitative easing policies in the euro area and the United States. International Financial Studies, 4, 45-51 (2015).

[7]. Slacalek, J., Lenza, M.: Quantitative easing did not increase inequality in the euro area. Research Bulletin, 54 (2019).

[8]. Xu, H., Zhang, J.: Re-examination of the effectiveness and transmission mechanism of quantitative easing monetary policy in the United States. Statistics and Decision Making, 36(19), 136-140 (2020).

[9]. Blanchard, F., Flint, D.: The Geopolitics of China’s Maritime Silk Road Initiative. Geopolitics, 22(2), 223–245 (2017).

[10]. Powell, M.: Journal of Brand Management: year end review 2018. Journal of Brand Management, 25(6), 494–499 (2018).

[11]. Bartkiewicz, P.: The Impact of Quantitative Easing on Emerging Markets – Literature Review. E-Finanse (2018).

[12]. Du, J., Cao, Y.: A time-varying study on the impact of U.S. monetary policy on China's economy. Economic Vertical, 10, 101-109 (2019).

[13]. Jin, X., Cao, Y.: A review of research on quantitative easing monetary policy. Zhejiang Social Science, 11, 143-150+161 (2016).

[14]. Bowman et al.: Assessment of the validity of reviewed studies. ResearchGate (2014).

[15]. Mishra, P.: Railway Budget 2014-15: Analysis, eSocialSciences (2014).

[16]. Axel, H.: An integrative taxonomic approach to resolving some difficult questions in the Larentiinae of the Mediterranean region, Lepidoptera, Geometridae (2013).

[17]. Luo, B., Shen, Z., Chang, H.: Reflections on the current inflation in China. Financial Theory and Practice, 2, 58-61 (2011).

[18]. Ding, L., Sun, X.: The dynamic impact of U.S. quantitative easing monetary policy on China's inflation. Financial Development Research, 9, 46-50 (2012).

[19]. Hu, Y., Zuo, L.: Does the implementation of negative nominal interest rate policy really work? Based on data from Japan and insights. Jiangxi Social Science, 42(07), 66-76 (2022).

[20]. Yu, S., Zheng, Z.: Study on the spillover effect of U.S. quantitative easing policy on China's economy. Journal of Southeast University (Philosophy and Social Science Edition), 15(05), 55-60+135 (2013).

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.