Effects of quantitative easing on the USA economy: A test for policy effectiveness
Contribuinte(s) |
Nunes, Luis Catela Freitas, Miguel Lebre de |
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Data(s) |
07/10/2015
07/10/2015
01/06/2015
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Resumo |
The catastrophic disruption in the USA financial system in the wake of the financial crisis prompted the Federal Reserve to launch a Quantitative Easing (QE) programme in late 2008. In line with Pesaran and Smith (2014), I use a policy effectiveness test to assess whether this massive asset purchase programme was effective in stimulating the economic activity in the USA. Specifically, I employ an Autoregressive Distributed Lag Model (ARDL), in order to obtain a counterfactual for the USA real GDP growth rate. Using data from 1983Q1 to 2009Q4, the results show that the beneficial effects of QE appear to be weak and rather short-lived. The null hypothesis of policy ineffectiveness is not rejected, which suggests that QE did not have a meaningful impact on output growth. |
Identificador |
http://hdl.handle.net/10362/15566 201473666 |
Idioma(s) |
eng |
Direitos |
openAccess |
Palavras-Chave | #Counterfactual #Policy effectiveness #Quantitative easing #Zero lower bound #Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
Tipo |
masterThesis |