Oral Presentations
Location
Sydnor Auditorium
Access Type
Open Access
Entry Number
31
Start Date
4-6-2022 10:45 AM
End Date
4-6-2022 11:00 AM
Abstract
My thesis will investigate and try to find a casual relationship between Quantitative Easing, or “QE”, and the U.S. stock market since 2003. The secondary effects will then be investigated to see if stock prices impact wealth inequality. To find the causal relationship between the two a regression model will be used. It predicts the magnitude of effects for QE and other variables that may impact stock prices. Since 2007-2009, the Federal Reserve has used QE as a means to spur economic growth. This expansionary monetary policy has impacted many financial markets including the U.S. stock market. Finding the extent to which QE impacts the stock market may have implications for further trickle-down effects throughout the economy, and detailing the effects on wealth inequality is the ultimate goal of the paper. After the effects are quantified, it may lead to the Federal Reserve needing to change its policy, look for other methods to stimulate the economy, or continue to directly purchase financial assets.
Faculty Mentor(s)
Dr. Gerald PranteDr. Nichole SandersDr. Jessica Scheld
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Included in
Behavioral Economics Commons, Economic Theory Commons, Finance Commons, Macroeconomics Commons, Public Economics Commons
The Effect of Quantitative Easing on U.S. Stock Prices and Wealth Inequality
Sydnor Auditorium
My thesis will investigate and try to find a casual relationship between Quantitative Easing, or “QE”, and the U.S. stock market since 2003. The secondary effects will then be investigated to see if stock prices impact wealth inequality. To find the causal relationship between the two a regression model will be used. It predicts the magnitude of effects for QE and other variables that may impact stock prices. Since 2007-2009, the Federal Reserve has used QE as a means to spur economic growth. This expansionary monetary policy has impacted many financial markets including the U.S. stock market. Finding the extent to which QE impacts the stock market may have implications for further trickle-down effects throughout the economy, and detailing the effects on wealth inequality is the ultimate goal of the paper. After the effects are quantified, it may lead to the Federal Reserve needing to change its policy, look for other methods to stimulate the economy, or continue to directly purchase financial assets.