The COVID-19 Pandemic Crisis and the Use of Quantitative Easing in Monetary Policy: An Evaluation with Examples of Developed Countries

Yiğitbaş Ş.

Journal of Balkan and Near Eastern Studies, vol.9, no.2, pp.53-62, 2023 (Peer-Reviewed Journal)

  • Publication Type: Article / Article
  • Volume: 9 Issue: 2
  • Publication Date: 2023
  • Journal Name: Journal of Balkan and Near Eastern Studies
  • Journal Indexes: Asos İndeks
  • Page Numbers: pp.53-62
  • Çanakkale Onsekiz Mart University Affiliated: Yes

Abstract

This article researched the effect of the unconventional monetary policy tool of quantitative easing (QE), commonly used by the world’s leading central banks (Federal Reserve and European Central Bank) after the COVID-19 pandemic crisis, on financial and reel markets. The purpose of QE is to inject money into the economy with the aim of stimulating nominal spending. This effect occurs through expectations and the use of credit. The article presents experiences based on data from the Federal Reserve and European Central Bank. Data show that the QE policy applied during the COVID-19 pandemic in the USA and European region had significant effects on total demand, inflation and GDP