The quantitative easing effect on the stock market of the USA, the UK and Japan

Luiz Lima (UFJF – Juiz de Fora Federal University, Juiz de Fora, Brazil)
Claudio Foffano Vasconcelos (UFJF – Juiz de Fora Federal University, Juiz de Fora, Brazil)
Jose Simão (UFJF – Juiz de Fora Federal University, Juiz de Fora, Brazil)
Helder Ferreira de Mendonça (Department of Economics, Fluminense Federal University, Rio de Janeiro, Brazil)

Journal of Economic Studies

ISSN: 0144-3585

Publication date: 14 November 2016

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., Simão, J. and de Mendonça, H. (2016), "The quantitative easing effect on the stock market of the USA, the UK and Japan", Journal of Economic Studies, Vol. 43 No. 6, pp. 1006-1021. https://doi.org/10.1108/JES-05-2015-0081

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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