Author

  • Baneng Lucas Naape

    • Department of Economics, University of Limpopo, South Africa
    • South Africa

  • Mamokgaetji Marius Masoga

    • Department of Economics, University of Limpopo, South Africa
    • South Africa

Abstract

This study aims to assess the impact and spill over effects of the United States (US) Quantitative Easing (QE) to South Africa. Using an event-study analysis on daily data spanning from 25/11/2008 – 12/12/2012 for selected QE dates, the study finds that US Treasury bills fall by 106 basis points on average during QE1, rise by 9 basis points and 8 basis points during QE2 and QE3, respectively. For South Africa, government bonds fall by 61 basis points on average during QE1, 9 basis points during QE2 and 2 basis points during QE3. This leads to the conclusion that UMPs boost the economy in the short run but hurt the economy in the long run, especially when targeting inflation, and used extensively. Therefore, policymakers should concentrate on the overall financial system to measure the financial risk, and thus consistently strengthen macro prudential orientation.

Keywords

References

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How to Cite

Naape, B. L., & Masoga, M. M. (2020). An Address of the 2008 Global Financial Crises with Unconventional Monetary Policies. Journal of Economics and Behavioral Studies, 11(6(J), 23-31. https://doi.org/10.22610/jebs.v11i6(J).2936

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Section

Research Paper

Published in

Vol. 11 No. 6(J) (2019) Monetary Policy, Culture & Financial Resilience View issue contents

Published

2020-02-08

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