The Impact of Quantitative Easing on Stock Prices in the U.S. Stock Market - Structural VAR Model Analysis
Lina Tang
Abstract:In an effort for future investment implications, the current study examined the relationship between historical Quantitative Easing (QE) programs and the stock market. This study analyzed weekly basis data in the United States between 2007 and 2023. Through a Vector auto-regression (VAR) model, a significant rise following a quick drop in stock prices to a positive shock in QE was discovered, indicating lagged response. Further robustness check proved the validation of relationship, by sectioning the whole dat… Show more
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