An Analysis of the European Quantitative Easing Policy.pdfVIP

AnAnalysisoftheEuropeanQuantitativeEasingPolicy AnAnalysisoftheEuropeanQuantitative E’。’asin‘gPloolliiccy3 LiuM ingli牢 incethe2008financialcrisis，theunconventionalmonetarypolicy of S“QuantitativeEasing”(QE)hasbecomearoutinemethodintheUS， UK．Japanandotherdevelopedeconomiesofdealingwiththeeconomic di~culties．In2015，theeconomically~oubledeurozonealsoputforward itsown0E strategy,whichhasattractedwideinternationalattention．This PapertriestoanalyzethecharacteristicsoftheQE implementedbythe European CentralBank (ECB)．the resultsand itslimitationsand shortcomings，andwhethertheeurozonecanboosts~ongeconomicgrowth viaOEinthewaythattheUSandUKhaveachieved． I．TheMainCharacteristicsofEuropeanQE Centralbanksusuallyadjusttheeconomythroughchanginginterest rates．W hen interestratesarecloseto zero．thecentralbank may buy ~easurybondsandotherlong．term bondstoincreasemoney supply and injectliquidity into themarket，SO asto encourage spending and borrowing．ThatiStosay,thecentralbank triestoadjusttheeconomy throughexpandingthesupplyofmoneyratherthanbyreducingtheprice ofcapita1．andthustheprocessiSknownas “quantitativeeasing”．ThisiS anunconventionalmonetarypolicy implementedbymonetary authorities onlywhenthoseconventionaltoolssuchasinterestrateadjustmentfail．In 2001，Japanbecamehtefirstcountry toimplementQE．Afterthe2008 financialcrisis．theUnitedStatesandBritainalsosuccessivelyadoptedthe policy．OnJanuary 22，2015，theECB launched itsownQE policy, LiuM ingliisAssociateResearch Fellow andDeputyDirectoroftheInstituteof European Sutdies，CICIR．Hisresearch domaincoverstheEuropean economyand Europeanforeigneconomicrelations． CIR July／August2015 87 LiuM ingli announcing thatfrom M arch 2O15 to September2016 itwould keep buying￡60billioninsecuritieseachmonthoratleast1．1trillioneurosi