Study Of Quantitative Easing Monetary Policy

After the financial crisis and even economic crisis initiated by Americansubprime mortgage crisis in the year2007, world economy fell into slow growth,certain countries or economies were even faced with recession. So all of them beganto seek kinds of measures to save their own economies.Among all of the measures, quantitative easing became of concern as it was firstinitiated by the United States and then imitated by some of other developed countries.This paper is mainly about the three rounds of American quantitative easing monetarypolicies including the background, the process and tools, the effects in and out ofAmerica. Most of the existing papers concentrated in studying the first two rounds byqualitative analysis. Then this paper does a systematic research on all of the threerounds by qualitative and quantitative analysis, not only integrates the three rounds asa whole, but also makes more exactly remarks on each round of the quantitativeeasing taken by Fed.By this paper, it is more explicit that American quantitative easing surely doesgood to American economic recovery, but it carries much more negative spillovereffects than positive ones to the world economy. Confronted with this situation, Chinahas to take corresponding measures to deal with problems it carries to China.