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HEC-Ecole de gestion de l'Université de Liège

Quantitative easing: a sound choice ? Evidence from the theory, past experiences, and the case of the euro area

Dumont, Louise ULiège
Promotor(s) : Artige, Lionel ULiège
Date of defense : 16-Jun-2016 • Permalink :
Title : Quantitative easing: a sound choice ? Evidence from the theory, past experiences, and the case of the euro area
Translated title : [fr] Quantitative easing: un choix judicieux? Apports de la théorie, des expériences passées, et du cas de la zone euro.
Author : Dumont, Louise ULiège
Date of defense  : 16-Jun-2016
Advisor(s) : Artige, Lionel ULiège
Committee's member(s) : Hübner, Georges ULiège
Lejeune, Thomas 
Language : English
Number of pages : 90
Keywords : [en] Quantitative easing, monetary policy, euro area
Discipline(s) : Business & economic sciences > Macroeconomics & monetary economics
Institution(s) : Université de Liège, Liège, Belgique
Degree: Master en sciences économiques,orientation générale, à finalité spécialisée en Economics and Finance
Faculty: Master thesis of the HEC-Ecole de gestion de l'Université de Liège


[en] Following the financial crisis, many economists have discussed the necessity of using unconventional monetary policies. These policies have been implemented by four major central banks (the Federal Reserve, the Bank of England, the Bank of Japan and the European Central Bank), but the opinions about their effectiveness remain mixed. More specifically, this paper focuses on the justification and effectiveness of quantitative easing (QE), a specific unconventional monetary policy that aims to increase the central bank’s balance sheet in an unusual way. According to the theory, QE programmes should decrease the long-term interest rates through the portfolio balance channel, which would in turn lead to an increase of investment and consumption in the targeted economy. It should also imply a depreciation of the domestic currency, enabling the country to increase its exports. However, this policy is not riskless and can create financial bubbles. It can also be seen as ineffective, if transmission channels do not function properly. The study of the US and UK cases shows that QE was partially effective, whereas it almost led to no result in Japan. Finally, focusing on the euro area, we can say that QE seems to have lowered long-term interest rates, but has not been sufficient until now to boost the economy. More precisely, there is no clear sign of a portfolio balance channel functioning in the euro area.



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  • Dumont, Louise ULiège Université de Liège > Master sc. éco., or. gén., fin. spéc. fin. (ex 2e master)


Committee's member(s)

  • Hübner, Georges ULiège Université de Liège - ULg > HEC-Ecole de gestion de l'ULg : UER > Gestion financière
    ORBi View his publications on ORBi
  • Lejeune, Thomas
  • Total number of views 143
  • Total number of downloads 32

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