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Quantitative Easing and Macroeconomic Performance in the United States

Author

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  • Inda Mulaahmetović

    (PhD Candidate in Management, International Burch University, Sarajevo, Bosnia and Herzegovina)

Abstract

This scientific paper examines the relationship between macroeconomic variables whose performance is measured under the implementation of Quantitative Easing in the US, by estimating vector autoregression (VAR) and Impulse Response Function with monthly data from US Federal Reserve, observed during the period January 1994-January 2022. Variables include: Consumer Price Index (CPIAUCSL); Industrial Production (INDPRO); Unemployment Rate (UNRATE); Interest Rates, Government Securities, Government Bonds (INTGSBUSM193N); Volatility Index (VIXCLS), Real Broad Effective Exchange Rate (RBUSBIS), Federal Surplus or Deficit (MTSDS133FMS), Money Supply M1 (WM1NS), M2 (WMNS), M3 (MABMM301USM189S). An evidence on macroeconomic variables of Consumer Price Index and Industrial Production when evaluating the effectiveness of QE is provided.

Suggested Citation

  • Inda Mulaahmetović, 2022. "Quantitative Easing and Macroeconomic Performance in the United States," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 11(3), pages 79-98.
    • Handle: RePEc:cbk:journl:v:11:y:2022:i:3:p:79-98
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    File URL: http://www.cbcg.me/repec/cbk/journl/vol11no3-4.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Quantitative Easing; US Federal Reserve; VAR; Impulse Response Function.;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F00 - International Economics - - General - - - General
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes

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