THE EFFECT OF THE FEDERAL RESERVE’S QE-PROGRAM ON THE STOCK MARKET
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
With an economy in recession after the financial crisis, the Federal Reserve resorted to quantitative easing, an unconventional monetary policy aimed to stimulate the economy. Using data on market anticipations and monetary policy announcements we estimate how the stock market reacts to unexpected QE announcements. Our qualitative analysis indicates that the QE3 program inflated the S&P 500 but we are unable to determine the size of the effect with statistical significance due to an insufficient amount of observations.
Place, publisher, year, edition, pages
Monetary Policy, Quantitative Easing, Federal Reserve, S&P 500
IdentifiersURN: urn:nbn:se:uu:diva-297818OAI: oai:DiVA.org:uu-297818DiVA: diva2:943541
Gottfries, Nils, Professor
Guvå, Tomas, Universitetslektor