The quantitative easing effect on the stock market of the USA, the UK and Japan: An ARDL approach for the crisis period. Issue 6 (14th November 2016)

• Record Type: Journal Article
• Authors: Lima, Luiz; Vasconcelos, Claudio Foffano; Simão, Jose; de Mendonça, Helder Ferreira
• Is Part Of: Journal of economic studies. Volume 43:Issue 6(2016)
• Page Start: 1006
• Page End: 1021
• Publication Date: 2016-11-14
• Subjects: Monetary policy -- Stock market -- Quantitative easing -- Monetary aggregates; E52 -- E58; Economics -- Periodicals; 330.05
• DOI: 10.1108/JES-05-2015-0081
• Languages: English
• ISSNs: 0144-3585

Abstract

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.