US Quantitative Easing Of Monetary Policy On Cross-border Capital Flows

In2007, U.S. subprime mortgage crisis broken out, it spread worldwide intensifiely.Eventually upgrade to the global financial crisis. As to the first half of2013, the UnitedStates has introduced a QE1, QE2, QE3to conduct a comprehensive rescue, increasing themoney supply, release large amounts of liquidity, resulting in large-scale cross-bordercapital flows.This article explore the impact of QE on cross-border capital in this context,.Firstly, the way using literature reviews, and overviews the main points of domestic andforeign scholars on U.S. quantitative easing monetary policy impacting on cross-bordercapital flows. On this basis, determine the path of this article. This article introduces U.S.quantitative easing monetary policy relevant knowledge context firstly, including thebackground and the reasons for the implementation of QE1QE2QE3, as well as detailedand specific analysis of its contents. After knowning beginning and end of U.S.quantitative easing monetary policy, according to the characteristics of cross-bordercapital flows, the analysis focuses on two levels: First, asset prices rise during the U.S.quantitative easing,the second, in emerging markets a large number of cross-border capitalinflows during the U.S. quantitative easing. The second is to analyze market indicators inChina, including our asset price index (SSE Composite Index), China’s interest rate index,exchange rate index, China’s economic growth indicators. To further analyze the impact ofU.S. quantitative easing on capital and financial capital flows, make co-integration test,Granger causality test to determine the path of interest rate channel, the credit channel,exchange rate channel. When quantitative easing exits, some countries in emergingmarkets will suffer a significant impact..But the impact is limited in China.Finally in orderto prevent large-scale cross-border capital outflows because of the impact of QE exit,thearticle make some recommendations...