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Author: Ramaprasad Bhar Publisher: ISBN: Category : Languages : en Pages : 21
Book Description
The Financial Crisis of 2007-09 caused the U.S. economy to experience a relatively long recession from December 2007 to June 2009. Both the U.S. government and the Federal Reserve undertook expansive fiscal and monetary policies to minimize both the severity and length of the recession. Most notably, the Federal Reserve initiated three rounds of unconventional monetary policies known as Quantitative Easing. These policies were intended to reduce long-term interest rates when the short term federal funds rates had reached the zero lower bound and could not become negative. It was argued that the lowering of longer-term interest rates would help the stock market and thus the wealth of consumers. This paper investigates this hypothesis and concludes that quantitative easing has contributed to the observed increases in the stock market's significant recovery since its crash due to the financial crisis.
Author: Ramaprasad Bhar Publisher: ISBN: Category : Languages : en Pages : 21
Book Description
The Financial Crisis of 2007-09 caused the U.S. economy to experience a relatively long recession from December 2007 to June 2009. Both the U.S. government and the Federal Reserve undertook expansive fiscal and monetary policies to minimize both the severity and length of the recession. Most notably, the Federal Reserve initiated three rounds of unconventional monetary policies known as Quantitative Easing. These policies were intended to reduce long-term interest rates when the short term federal funds rates had reached the zero lower bound and could not become negative. It was argued that the lowering of longer-term interest rates would help the stock market and thus the wealth of consumers. This paper investigates this hypothesis and concludes that quantitative easing has contributed to the observed increases in the stock market's significant recovery since its crash due to the financial crisis.
Author: Neven Vidaković Publisher: Springer Nature ISBN: 3030754448 Category : Political Science Languages : en Pages : 379
Book Description
This book examines economic policies utilized within Southeast Europe in response to the COVID-19 pandemic. Covering countries both within and outside the European Union, the human and economic cost of the pandemic is calculated using macroeconomic models from a short and longer term perspective. The economic policies used during the pandemic are analyzed, alongside crisis management approaches, to highlight the effectiveness of monetary policy, fiscal policies and potential future economic solutions for the post COVID-19 period. This book aims to provide policy recommendations based on findings from Southeast Europe. It is relevant to researchers and policymakers involved in economic policy and the political economy, as well as anyone interested in the responses to the COVID-19 pandemic.
Author: Kjell Hausken Publisher: Springer Science & Business Media ISBN: 1461496462 Category : Business & Economics Languages : en Pages : 129
Book Description
This volume empirically analyzes the effects of quantitative easing (QE) on interest rates and the economy in the US, Japan, UK and Europe. Using an event-study methodology, the authors find that the measures undertaken by the Federal Reserve and Bank of England, which focus primarily on bond purchases, are much more effective in lowering interest rates than those undertaken by the Bank of Japan and the European Central Bank, which have relied more heavily on lending to private financial institutions. Using large Bayesian vector autoregression (BVAR) models they also analyze the impact of QE on the wider economy. They produce no-QE counterfactual forecasts that are compared with their corresponding baseline forecasts, incorporating the effects of QE on government bond spreads. Despite the failure of stimulating economic activities as a whole, the simulation results suggest that the unconventional monetary policies have a positive influence on industrial production in the US, UK and Japan. The authors’ analysis finds that QE contributes to the reduction in unemployment in the US and Japan, and a rise in inflation-expectations in the US, UK and Euro zone. However, evidence on QE’s effect on house prices, stock prices, consumer confidence, and exchange rate, is mixed and thus inconclusive.
Author: Miguel Villanueva Publisher: ISBN: Category : Languages : en Pages : 37
Book Description
Conventional wisdom is that unconventional monetary policy a.k.a. Quantitative Easing (QE) pursued by the Federal Reserve has helped sustain and even boost U.S. stock market prices in the aftermath of the Global Financial Crisis. By design, QE has supported long-term Treasury bond prices and put downward pressure on long term rates; however the link to stock prices is more complicated because other factors operate as well, e.g., the performance of stock markets in the rest of the world, US dollar performance, virtually zero fed funds rate via conventional monetary policy (independent of policies such as QE), and changes in the interaction between economic activity and credit conditions - as measured for instance by the high yield spread along the lines of the financial accelerator theory. This paper presents evidence that these other factors explain most of the variation in stock returns before and after the financial crisis with stable coefficients and that the different rounds of QE explain significantly some of the remaining variation in stock prices. A vector autoregression provides further evidence of the effects of QE on stock returns and its relative importance vis-à-vis other variables via a Pesaran-Shin generalized impulse-response analysis (invariant to the causality ordering). The evidence in this paper is consistent with the boost in stock prices after the Fed actually started tapering in January 2014 because the “fundamentals” were supportive of the stock market. Furthermore, if the positive effects of QE on the stock market are less strong than commonly believed, the negative effects from a gradual shrinking of the Fed's balance sheet may not be as bad as commonly feared.
Author: John Mauldin Publisher: John Wiley & Sons ISBN: 1118783727 Category : Business & Economics Languages : en Pages : 368
Book Description
Wall Street Journal Bestseller Valuable insights on monetary policies, their impact on your financial future, and how to protect against them Written by the New York Times bestselling author team of John Mauldin and Jonathan Tepper, Code Red spills the beans on the central banks in the U.S., U.K., E.U., and Japan and how they've rigged the game against the average saver and investor. More importantly, it shows you how to protect your hard-earned cash from the bankers' disastrous monetary policies and how to come out a winner in the irresponsible game of chicken they're playing with the global financial system. From quantitative easing to zero interest rate policies, ZIRP to the impending currency wars, runaway inflation to GDP targeting, authors Mauldin and Tepper achieve the impossible by not only explaining global monetary policy and its consequences in plain English, but also making it compelling reading. Outlines time-tested strategies for surviving and thriving in these tumultuous times Addresses how issues such as quantitative easing, financial repression, currency wars, bubble economies, and inflation impact our everyday lives as well as our financial future Written by a team of bestselling authors and experts in this dynamic field How did we get here and where are we headed? What can you do to insulate yourself against, and profit from, economic upheaval and secure your financial future? Find out in Code Red.
Author: Shaen Corbet Publisher: ISBN: Category : Languages : en Pages : 31
Book Description
In November 2008, the United States (US) Federal Reserve began purchasing mortgage-backed security obligations, in an attempt to support the failing housing market and improve financial market conditions. This paper provides an investigation of the volatility effects associated with regularly scheduled US Federal Reserve quantitative easing (QE) announcements, using high-frequency returns data. We find significant and substantial increases of stock market volatility immediately after a policy announcement, peaking in the hour following each Federal Open Market Committee (FOMC) announcement. The increase in volatility is largest when the market is provided with forewarning of an announcement. Unexpected announcements lead to longer short-term volatility persistence. Volatility persistence is amplified when the contents of the surprise announcement are positive. Finally, we find evidence of an increase in market returns prior to a FOMC announcement.
Author: International Monetary Fund Publisher: International Monetary Fund ISBN: 1451873514 Category : Business & Economics Languages : en Pages : 50
Book Description
This paper examines the impact of macroeconomic and financial sector policy announcements in the United States, the United Kingdom, the euro area, and Japan during the recent crisis on interbank credit and liquidity risk premia. Announcements of interest rate cuts, liquidity support, liability guarantees, and recapitalization were associated with a reduction of interbank risk premia, albeit to a different degree during the subprime and global phases of the crisis. Decisions not to reduce interest rates and bail out individual banks in an ad hoc manner had adverse repercussions, both domestically and abroad. The results are robust to controlling for the surprise content of announcements and using alternative measures of financial distress.
Author: Frances Coppola Publisher: John Wiley & Sons ISBN: 1509531327 Category : Political Science Languages : en Pages : 59
Book Description
In the wake of the 2008 financial crisis, central banks created trillions of dollars of new money, and poured it into financial markets. ‘Quantitative Easing’ (QE) was supposed to prevent deflation and restore economic growth. But the money didn’t go to ordinary people: it went to the rich, who didn’t need it. It went to big corporations and banks – the same banks whose reckless lending caused the crash. This led to a decade of stagnation, not recovery. QE failed. In this book, Frances Coppola makes the case for a ‘people’s QE’, in which the money goes directly to ordinary people and small businesses. She argues that it is the fairest and most effective way of restoring crisis-hit economies and helping to solve the long-term challenges of ageing populations, automation and climate change.
Author: Ramaprasad Bhar
Author: Ramaprasad Bhar
Author: Neven Vidaković
Author: Kjell Hausken
Author: Miguel Villanueva
Author: 
Author: 石傑森
Author: John Mauldin
Author: Shaen Corbet
Author: International Monetary Fund
Author: Frances Coppola