Quantitative Easing, Financial Markets, and Inflationary Dynamics
| Project/Area Number |
17H02532
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| Research Category |
Grant-in-Aid for Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Economic policy
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| Research Institution | Research Institute of Economy, Trade and Industry |
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Principal Investigator |
Thorbecke Willem 独立行政法人経済産業研究所, 研究グループ, 上席研究員 (70419018)
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| Project Period (FY) |
2017-04-01 – 2020-03-31
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| Project Status |
Completed (Fiscal Year 2019)
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| Budget Amount *help |
¥4,680,000 (Direct Cost: ¥3,600,000、Indirect Cost: ¥1,080,000)
Fiscal Year 2019: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000)
Fiscal Year 2018: ¥1,430,000 (Direct Cost: ¥1,100,000、Indirect Cost: ¥330,000)
Fiscal Year 2017: ¥1,820,000 (Direct Cost: ¥1,400,000、Indirect Cost: ¥420,000)
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| Keywords | inflation / monetary policy / global value chains / oil prices / Oil prices / East Asian Value Chains / Inflation / international economics / International Economics / 国際経済学 |
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| Outline of Final Research Achievements |
The project investigated how Quantitative Easing affects inflation, how inflation has changed, and draws policy implications. I found investors believed that U.S. unconventional monetary policy would raise inflation when inflation was close to its target but not when inflation was off target. I found the Fed regained credibility to keep inflation from growing out of control after the Global Financial Crisis (GFC). I found that positive oil price shocks harmed U.S. stock prices before the GFC but benefited them after. I found that oil price increases recently have not harmed many stocks in Asia. These last two findings indicate that rising inflation from oil price increases is no longer as important. Researcher highlighted that China’s exports and global value chains have contained inflation. This project investigated how Asian value chains work and suggested how they can continue in the face of tariffs, pandemics, and other threats.
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| Academic Significance and Societal Importance of the Research Achievements |
I found the Fed has credibility, Quantitative Easing works when inflation is on target, and oil prices affect economies differently now. I reported how supply chains can survive and innovate. I had many papers, presentations and newspaper pieces, helping the findings to percolate into policymaking.
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Report
(4 results)
Research Products
(26 results)
