The quantitative easing effect on the stock market of the USA, the UK and Japan

Luiz Lima, Claudio Foffano Vasconcelos, Jose Simão and Helder de Mendonça ()

Journal of Economic Studies, 2016, vol. 43, issue 6, 1006-1021

Abstract: Purpose - The purpose of this paper is to analyze if the unconventional monetary policy, known as quantitative easing (QE) practiced by central banks in the USA, the UK, and Japan was effective to increase the market share after subprime crisis. Design/methodology/approach - In order to analyze the effect of the QE on the stock markets of the USA, the UK, and Japan, the authors use an ARDL model to find the long-run relationship among the variables. Findings - The findings denote that the QE implemented by the central banks in the USA, Japan, and the UK had a positive impact on their stock markets. Originality/value - The results of the paper give some new insights about the conduction of monetary policy when the interest rates are close to zero.

Keywords: Monetary policy; Stock market; Quantitative easing; Monetary aggregates; E52; E58 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (64)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:jespps:jes-05-2015-0081

DOI: 10.1108/JES-05-2015-0081

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