Quantitative Easing, recent implementations and the impact on Australia
MGSM845
Economic
Context of
Management
Student Name:
Student Number:
Presented to: John-Paul Monck
Date due: 26th August, 2013
Term 3, 2013 Monday Evening CBD
Word Count: 1598
CONTENTS
MGSM845 ECONMIC CONTEXT OF MANAGEMENT ESSAY TERM 3, 2013 ............................. 2
WHAT IS QUATITATIVE EASING ........................................................................................ 2
OBJECTIVES OF QUATITATIVE EASING ............................................................................. 2
RECENT APPLICATIONS AND THEIR SUCCESSES (OR FAILURES?)....................................... 3
THE EFFECT ON THE AUSTRALIAN ECONOMY (AND GLOBALLY) .......................................... 4
APPENDIX A THE LIQUITY TRAP AND OTHER RISKS OF QE AND POTENTIAL
SOLUTIONS ................................................................................................................... 6
THE LIQUIDITY TRAP ...................................................................................................... 6
DANGERS, DRAWBACKS AND RISKS OF QUANTITATIVE EASING .......................................... 6
SO WHAT’S THE SOLUTION? ........................................................................................... 7
APPENDIX B QE BOOSTS GROWTH..................................................................................... 8
BIBLIOGRAPHY ............................................................................................................. 9
1
MGSM845 ECONMIC CONTEXT OF MANAGEMENT ESSAY TERM 3, 2013
Describe the monetary policy technique known as quantitative easing (QE). What are its objectives and how successful has it been in recent applications? If the US engages in
QE, what effect does it have on Australia?
WHAT IS QUATITATIVE EASING
Quantitative easing is used by central banks to inject the economy with money via the purchasing of securities from the market and is often considered unconventional, sometimes referred
Economic
Context of
Management
Student Name:
Student Number:
Presented to: John-Paul Monck
Date due: 26th August, 2013
Term 3, 2013 Monday Evening CBD
Word Count: 1598
CONTENTS
MGSM845 ECONMIC CONTEXT OF MANAGEMENT ESSAY TERM 3, 2013 ............................. 2
WHAT IS QUATITATIVE EASING ........................................................................................ 2
OBJECTIVES OF QUATITATIVE EASING ............................................................................. 2
RECENT APPLICATIONS AND THEIR SUCCESSES (OR FAILURES?)....................................... 3
THE EFFECT ON THE AUSTRALIAN ECONOMY (AND GLOBALLY) .......................................... 4
APPENDIX A THE LIQUITY TRAP AND OTHER RISKS OF QE AND POTENTIAL
SOLUTIONS ................................................................................................................... 6
THE LIQUIDITY TRAP ...................................................................................................... 6
DANGERS, DRAWBACKS AND RISKS OF QUANTITATIVE EASING .......................................... 6
SO WHAT’S THE SOLUTION? ........................................................................................... 7
APPENDIX B QE BOOSTS GROWTH..................................................................................... 8
BIBLIOGRAPHY ............................................................................................................. 9
1
MGSM845 ECONMIC CONTEXT OF MANAGEMENT ESSAY TERM 3, 2013
Describe the monetary policy technique known as quantitative easing (QE). What are its objectives and how successful has it been in recent applications? If the US engages in
QE, what effect does it have on Australia?
WHAT IS QUATITATIVE EASING
Quantitative easing is used by central banks to inject the economy with money via the purchasing of securities from the market and is often considered unconventional, sometimes referred
Bibliography: Retrieved August 7, 2013 from Westpac Business Information Centre. Easing: Author, CNBC, Retrieved August 20, 2013 from http://www.cnbc.com/id/41071743 August 8, 2013 from http://www.bankofengland.co.uk/education/Pages/inflation/qe/default.aspx Sydney Morning Herald, Retrieved August 20, 2013 from http://news.smh.com.au/breaking-news-business/halcyon-days-for-the-a-areover--oliver-20130502-2iv8l.html ERC Research: The dangers and drawbacks of Quantitative Easing, Retrieved August 24, 2013 from http://www.ecrresearch.com/world-economy/dangersand-drawbacks-quantitative-easing European Economics. (March 22, 2013): Europe: A positive baseline with downside risks, World Outlook, Deutsche Bank Fawley, Brett W. and Neely, Christopher J. (January/February 2013): Four Stories of Quantitative Easing, Federal Reserve Bank of St January/February 2013, retrieved August 8, 2013 from http://research.stlouisfed.org/publications/review/article/9602 Fulleton, Ticky (September 11, 2012): Brave moves needed to sooth volatile heading towards., The Business, ABC News, Retrieved August 20, 2013 from http://www.abc.net.au/news/2012-09-10/crisis-solution/4253788 21, 2013 from http://Lexicon.ft.com/PrintTerm?term=quantitative-easing Lessons We 've Learned, The Regional Economist July 2012, retrieved August 21, 2013 from http://www.stlouisfed.org/publications/re/articles/?id=2258 Hooper, Peter. Mayer, Thomas. Spencer, Ph.D. Michael. and Slok, Torsten.(February 22, 2013): Central Bank Watch, Global Economic Perspectives, Deutsche Bank. Retrieved August 7, 2013 from Westpac Business Information Centre. Hooper, Peter. Mayer, Thomas. and Spencer, Michael. (March 22, 2013): Staying the Course on a Seam of Central Bank Liquidity, World Outlook, Deutsche Bank. Retrieved August 7, 2013 from Westpac Business Information Centre. Investopedia: Deflation, retrieved August 22, 2013 from http://www.investopedia.com/terms/d/deflation.asp