Global Economy, Monetary Policies and their Impact on Financial Markets
Global Economy, Monetary Policies and their Impact on Financial Markets

Author(s): Miroslav KMEŤKO, Miloš Bikár
Subject(s): Supranational / Global Economy, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: monetary policy; quantitative easing; market volatility; currency movements; asset reallocation; institutional investors;
Summary/Abstract: The Global Economic and Financial Crisis led central banks in advanced economies to adopt a variety of standard and non-standard measures to ease monetary conditions. In the US, the UK, and Japan the centerpiece of these non-standard measures has been large-scale purchases of financial assets, also known as quantitative easing (QE). Purchases of financial assets financed by central bank money increase liquidity and push up asset prices, as those who have sold assets to the central bank rebalance their portfolios into riskier assets.

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