| dc.description.abstract | After the U.S. financial crisis in 2008, for solving the problem of illiquidity, the Board of Governors of the Federal Reserve System (Fed) implemented various monetary policies, including cutting interest rates continuously. The implement of monetary policy didn’t gain the effect like expectations. For boosting economic growth, controlling the inflation and reducing unemployment, Fed implemented the quantitative easing policy (QE) in November 2008. However, because of QE, the large number of funds released from U.S. flooded into the financial markets or commodity markets with higher return on the investments and caused the turmoil of global markets. This study analyzes how the implement of QE affect the economic data, financial markets and commodity markets. As a result, this study focuses on the period from September 15 2008, the bankruptcy of Lehman Brothers, to December 18 2013, the announcement of slowing QE from the Fed.
The results show that QE has the strong effect in the very beginning and decreasing with the number of executions. After QE shrinking, the continuity of effect isn’t obvious. On the other hands, the implement of QE improves economic data but need a long time to show its effects. Furthermore, the implement of QE also causes the U.S. dollar and bond yields fallen and makes other countries face the pressure of currency appreciation and the increase of price in financial markets and commodity markets. Because the global economic doesn’t recover yet, the doubts of asset bubble bring a certain extent of risk on the future economic development.
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