Honors College Theses

Publication Date



Finance (BBA)

Document Type and Release Option

Thesis (restricted to Georgia Southern)

Faculty Mentor

Bill Yang


Following the financial crisis of 2008, which impacted countries throughout the world, central banks across the globe embarked on emergency monetary policy measures in the form of Quantitative Easing (QE), or the purchase of fixed income assets by a central bank, for the purpose of expanding money supplies and stimulating aggregate demand (AD). However, countries that have used this policy measure in the past have had difficulty in re-stabilizing their economies and maintaining a positive level of inflation (with one example being that of Japan.) This study intends to show, through a theoretical model and corroborative studies, that Quantitative Easing has a diminishing return over the course of a policy, and that the policy results in a contractionary effect at its conclusion.