The quantitative easing effect on the stock market of the USA, the UK and Japan: An ARDL approach for the crisis period
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
Citation
Lima, L., Vasconcelos, C.F., Simão, J. and de Mendonça, H.F. (2016), "The quantitative easing effect on the stock market of the USA, the UK and Japan: An ARDL approach for the crisis period", Journal of Economic Studies, Vol. 43 No. 6, pp. 1006-1021. https://doi.org/10.1108/JES-05-2015-0081
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited