Quantitative Easing: New Normal or Emergency Measure?

Bartkiewicz, Piotr

doi:10.5709/ce.1897-9254.406

Cited by 4 publications

(5 citation statements)

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“…In response, the ECB adopted an extremely expansionary monetary policy to stimulate economic activity during the crisis, but its interest rate channel became inefficient when interest rates fell to very low or even zero lev-els. To counter this, the ECB implemented unconventional monetary policy measures and instruments, such as central bank announcements [24,29] and quantitative easing [30,31], which have proven to be more effective in conveying information to market participants about the direction of monetary policy and managing their expectations, thereby making ECB monetary policy more efficient.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluating the Outcomes of Monetary and Fiscal Policies in the EU in Times of Crisis: A PLS-SEM Approach

et al. 2023

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The asymmetric level of integration within the European Union (EU) regarding membership in the European Monetary Union (EMU) has resulted in inconsistent responses to crises such as the Great Recession of 2007–2009 and the European sovereign debt crisis of 2010–2013. Furthermore, it has led to varying outcomes of monetary and fiscal policies implemented across EU countries. This paper aims to investigate the impact of monetary and fiscal policies on economic development and employment through the inflation channel in the EU between 2007 and 2015, using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that the outcomes of monetary policy have been mixed between EMU and non-EMU countries, resulting in different measures and negative spillover effects of the European Central Bank’s (ECB) policy on countries outside of the EMU. Meanwhile, the ability of fiscal policy to lower inflation and boost economic growth and employment has been limited, which means that the impact of fiscal policy on both economic development and employment and inflation has been minor. Based on the findings of this study, there should be better coordination of monetary and fiscal policies at the EU level to support the macroeconomic stability of the Union during times of crisis.

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Section: Literature Reviewmentioning

confidence: 99%

Evaluating the Outcomes of Monetary and Fiscal Policies in the EU in Times of Crisis: A PLS-SEM Approach

et al. 2023

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“…The data reported in Table 1 illustrates how unlikely such a scenario is, especially over an extended period. Modern monetary policies have been generous in terms of providing liquidities, and many expect this trend to continue (Kiley, 2018;Ronkainen and Sorsa, 2018;Bartkiewicz, 2020), as such policies are addictive and Notes: Figure 5 compares the supply growth of Bitcoin to the M3 supply of a basket of major currencies including the US dollar (US$), the euro (EUR), the British pound (GBP), the renminbi (CNY), the Japanese yen (JPY), the Canadian dollar (CA$) and the Australian dollar (AU$). The vertical axis represents the growth of the M3 supply in circulation each year since the inception of Bitcoin Source: FRED.…”

Section: Supply Sidementioning

confidence: 99%

“…Note that for the Chinese Renminbi, data is only available until 2018 can be costly to exit (Fujiki and Tomura, 2017;Hayashi and Koeda, 2019;Karadi and Nakov, 2021). In essence, Bitcoin's relative scarcity would increase over time assuming historical values of g c , and even more so if QE becomes "the new normal" (Kiley, 2018;Bartkiewicz, 2020).…”

Section: Supply Sidementioning

confidence: 99%

Bitcoin’s value proposition: shorting expansionary monetary policies

Morillon

2021

SEF

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Purpose Professionals and academics alike hold polarized opinions about Bitcoin’s purpose and its fundamental value. This paper aims to describe Bitcoin’s unique features that make it such an intriguing asset and proposes a new way to consider Bitcoin and its underlying value. Design/methodology/approach In this paper the author discusses Bitcoin’s defining features that make it a unique asset. The author argues that Bitcoin should not be considered as a single purpose asset only, but rather as a new digital financial asset serving several functions, at least partially. The author discusses the role of Bitcoin in the traditional financial system, contrasts Bitcoin to gold, considers the implications of the continuance of expansionary policies on Bitcoin and discusses the impact of the emergence of cryptocurrencies as a new asset class on public policies. Findings In addition to functioning as a means of payment (at least partially) and a diversification tool, part of Bitcoin’s value proposition stems from its worth as a short position on modern expansionary monetary policies. Indeed, Bitcoin’s value should rise if expansionary monetary policies are maintained, amounting to a tool to short these policies, which should be considered in future attempts to value Bitcoin. Originality/value The author adds a new layer to the ongoing thought process by arguing of a function played by Bitcoin unaccounted for thus far by the literature. Additionally, the author describes the features and mechanisms, allowing Bitcoin to play that role.

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“…Most of the research on the influence and impact on inflation and other macroeconomic instruments such as; interest rates, unemployment, and gross domestic product (Ajah et al, 2020;Diamond, 2020;Perillo & Battiston, 2020;Ramkumar & Bates, 2020;Taghizadeh-Hesary et al, 2020). Min-Ho Nam concluded from his quantitative research that quantitative easing (QE) policies in developed countries such as the United States, Japan, Europe, and the United Kingdom have effectively helped lower inflation through the exchange rate channel, while if using trade channels the influence on inflation is insignificant (Bartkiewicz, 2020;Blattner & Joyce, 2020;De Santis & Holm-Hadulla, 2020;Tanaka, 2020;Ward, 2020). Other research shows that QE policy by the Fed has a significant influence on the financial sector in Indonesia (Pastpipatkul et al, 2015;Teguh&Andaiyani, 2019;Rizky, 2015).…”

Section: Literature Reviewmentioning

confidence: 99%

“…So the money supply included in the form of quantitative easing (QE) should pay attention to the real sector, namely the value or volume of transactions (PQ). Meanwhile, Chapra provides solutions on the government's direct involvement in quantitative easing (QE) to increase purchasing power (PQ) through appropriate direct subsidies in the sector of basic needs, public facilities, health, and education (Bartkiewicz, 2020;Blattner & Joyce, 2020;De Santis & Holm-Hadulla, 2020;Tanaka, 2020;Ward, 2020).…”

Section: Cmentioning

confidence: 99%

Quantitative Easing In Overcoming the Crisis: Criticism ofQeinthe Monetary System Of Capitalism

Et.al¹

2021

TURCOMAT

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This study aims to describe the form of Quantitative Easing applied by the Central Bank as well as qualitatively measure its benefits and excesses. To obtain a description and know the benefits and excesses in question, the research approach uses a qualitative approach by conducting a literature study of several facts and quantitative easing studies by Bank Indonesia and the Fed from various literature and media inductively relevant theories. This study's findings show that excesses can be detrimental to society, and countries that are shariah are harmful that should be avoided. This research is expected to encourage further research to determine the correlation of Quantitative Easing policy to the resolution of economic crisis and obtain alternative solutions by implementing the Islamic monetary system. The impact of the covid-19 pandemic that continues to this day causes economic shock, the slowing flow of goods commodities, decreased production, and decreased purchasing power of the community. Various policy efforts are carried out through fiscal stimulus as well as support through monetary policy in the form of quantitative easing.

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Quantitative Easing: New Normal or Emergency Measure?

Cited by 4 publications

References 0 publications

Evaluating the Outcomes of Monetary and Fiscal Policies in the EU in Times of Crisis: A PLS-SEM Approach

Evaluating the Outcomes of Monetary and Fiscal Policies in the EU in Times of Crisis: A PLS-SEM Approach

Bitcoin’s value proposition: shorting expansionary monetary policies

Quantitative Easing In Overcoming the Crisis: Criticism ofQeinthe Monetary System Of Capitalism

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