Bank of England Quantitative Easing(Benefits and consequences) Dissertation

Bank of England Quantitative Easing(Benefits and consequences) - Dissertation ExampleOn the other(a) hand, such a response may be just what the UK and US need in order to prevent a deflationary spiral as a result of the financial crisis. If the first round had no detrimental effects, the promontory remains as to how far is right, because a second round may go further into creating inflationary pressures than expected. The purpose of this paper is to examine whether or not QE could be a viable means of implementing pecuniary policy to grapple the present financial morass. Findings arrived at are tentative, because of the relatively short time the vicenary easing policy has been implemented, which spans only about two years for both the US and the UK. For Japan, on the other hand, while QE was implemented for a full five years, the results are inapplicable to the present situation because QE was meant to address Japans negative inflation position already registering for several y ears, which is entirely different from the terror posed by the present crisis on UK and the US. Acknowledgment Table of Contents Title Page 1 Abstract 2 Acknowledgement 3 Table of Contents 4 Chapter 1 Introduction 6 1.1 backdrop of the research topic 6 1.2 Objectives of the study 7 1.3 Research question and subquestions 8 1.4 setting and limitations of the study 8 1.5 Ethical considerations 9 Chapter 2 Review of related literature 10 2.1 Background of quantitative easing 10 2.2 Quantitative easing as implemented in the UK 12 2.3 bandstand of the sceptics 19 2.4 Viewpoint of the enthusiasts 21 2.5 Modest impact assessment 22 2.6 Other Econometric Studies 23 Chapter 3 Methodology 24 3.1 Research strategy 24 3.2 info description 24 3.3 Data gathering methodology 24 3.4 Analysis of data 25 3.5 Limitations of data and compend 25 Chapter 4 Case study US and Japan 27 4.1 Quantitative easing in Japan 27 4.2 Quantitative easing in the United States 33 4.3 Comparison among the US, UK a nd Japanese QE 38 Chapter 5 Results, analysis and discussion 40 5.1 Analysis of variance with log of monetary base and log of long-term evoke rate as variables 40 5.2 Analysis of variance with monetary base and long-term interest rate as variables 43 Chapter 6 Conclusion 46 6.1 Summary of the dissertation 46 6.2 Findings of the study answers to the subquestions 46 6.3 Conclusion answer to the research objective 47 6.4 Recommendations for future research 48 References 49 Appendices 53 Chapter 1 Introduction 1. 1 Background of the research topic Quantitative easing is a play which the central banks often consider as a last resort to inject liquid in an economy, without caring for its own quantity of reserve assets (Organisation for Economic Co-operation and Development 72). Often banks opt to buy get through all government activity securities in circulation in the open market in their aggression, without preferring to fix any come out rate of retaining their money reserves (Baum ol & Blinder 271 Marta & Brusuelas, Quantitative Easing). Such an unorthodox strategy, as quantitative easing, helped to bail out economies like Japan at a time when it was undergoing its worst phase of liquidity crunch. The method helped the nation to revive from its plight through enhancing its monetary base significantly, though meanwhile the government had to face immense deficits in their budgets (Organisation