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Quantitative easing’s impact on inflation

Hagenbäck, Markus LU (2022) NEKH01 20221
Department of Economics
Abstract
This paper estimates the effects of quantitative easing (QE) policies on consumer inflation in Sweden, the United States, and the euro area. Furthermore, the effects of QE policies on additional macroeconomic variables have also been investigated. To study the effects, quarterly data was used in a local projections impulse response function (IRF). The results implies that QE increased consumer inflation in the euro area, but not in Sweden. No clear result could be inferred for the United States. In the case of Sweden, QE caused deprecation of the exchange rate. A link between QE policies and inflation expectations was also found for the euro area, a link not found for Sweden. This paper contributes to a broader comprehension of QE... (More)
This paper estimates the effects of quantitative easing (QE) policies on consumer inflation in Sweden, the United States, and the euro area. Furthermore, the effects of QE policies on additional macroeconomic variables have also been investigated. To study the effects, quarterly data was used in a local projections impulse response function (IRF). The results implies that QE increased consumer inflation in the euro area, but not in Sweden. No clear result could be inferred for the United States. In the case of Sweden, QE caused deprecation of the exchange rate. A link between QE policies and inflation expectations was also found for the euro area, a link not found for Sweden. This paper contributes to a broader comprehension of QE policies, especially for small open economies as Sweden. (Less)
Please use this url to cite or link to this publication:
author
Hagenbäck, Markus LU
supervisor
organization
course
NEKH01 20221
year
type
M2 - Bachelor Degree
subject
keywords
quantitative easing, inflation, Sweden, United States, Euro area
language
English
id
9082575
date added to LUP
2022-10-10 08:50:51
date last changed
2022-10-10 08:50:51
@misc{9082575,
  abstract     = {{This paper estimates the effects of quantitative easing (QE) policies on consumer inflation in Sweden, the United States, and the euro area. Furthermore, the effects of QE policies on additional macroeconomic variables have also been investigated. To study the effects, quarterly data was used in a local projections impulse response function (IRF). The results implies that QE increased consumer inflation in the euro area, but not in Sweden. No clear result could be inferred for the United States. In the case of Sweden, QE caused deprecation of the exchange rate. A link between QE policies and inflation expectations was also found for the euro area, a link not found for Sweden. This paper contributes to a broader comprehension of QE policies, especially for small open economies as Sweden.}},
  author       = {{Hagenbäck, Markus}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Quantitative easing’s impact on inflation}},
  year         = {{2022}},
}