Location

Sydnor Auditorium

Access Type

Open Access

Presentation Type

Oral Presentation

Start Date

April 2022

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)

Gerald Prante, Nichole Sanders, Jessica Scheld

Rights Statement

The right to download or print any portion of this material is granted by the copyright owner only for personal or educational use. The author/creator retains all proprietary rights, including copyright ownership. Any editing, other reproduction or other use of this material by any means requires the express written permission of the copyright owner. Except as provided above, or for any other use that is allowed by fair use (Title 17, §107 U.S.C.), you may not reproduce, republish, post, transmit or distribute any material from this web site in any physical or digital form without the permission of the copyright owner of the material.

Share

COinS
 
Apr 6th, 10:45 AM

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.