TY - JOUR AB - This case presents financial and macroeconomic data for the United States between 2007 and 2013, a period covering the financial crisis and Great Recession of 2007–2009 and the slow economic recovery from 2009 onward. During this period, the Federal Reserve had set the federal funds rate, its primary monetary policy instrument, near zero and was using additional monetary policy tools to stimulate the economy. One of these additional tools was quantitative easing (QE).Students will use the data provided in the case to examine how financial markets reacted to QE actions by the Federal Reserve and to analyze the potential impact of QE on the macroeconomy.After reading and analyzing the case, students will be able to:Apply the event study methodology to analyze economic effectsRecognize how macroeconomic news affects the prices of financial securitiesDescribe the connections between the prices of financial securities and the macroeconomy• Debate the relative costs and benefits of quantitative easing and the optimality of Federal Reserve policy VL - IS - SN - 2474-6568 DO - 10.1108/case.kellogg.2016.000271 UR - https://doi.org/10.1108/case.kellogg.2016.000271 AU - Krishnamurthy Arvind AU - Foster Taft PY - 2017 Y1 - 2017/01/01 TI - Quantitative Easing in the Great Recession T2 - Kellogg School of Management Cases PB - Kellogg School of Management SP - 1 EP - 23 Y2 - 2024/03/28 ER -