Bachelor of Arts
Dr. Gerald Prante
Dr. Jessica Scheld
Dr. Nichole Sanders
My thesis will investigate and attempt to find a causal relationship between Quantitative Easing (QE) and the U.S. stock market since 2003. The secondary effects will then be explored to see if stock prices impact wealth inequality. To find the causal relationship between the QE and the stock market, a regression model will be used. It predicts the magnitude of effects of 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 this paper. After the effects are quantified, it may lead to the Federal Reserve needing to adapt its policy, develop other methods to stimulate the economy, or continue to directly purchase financial assets.
Phillips, Griffin, "The Effect of Quantitative Easing on the U.S. Stock Market and Wealth Inequality" (2022). Undergraduate Theses and Capstone Projects. 252.