| Title |
Impact of quantitative tightening on inflation in the US |
| Translation of Title |
Kiekybinio griežtinimo poveikis infliacijai JAV. |
| Authors |
Misevičius, Paulius |
| Full Text |
|
| Pages |
88 |
| Keywords [eng] |
quantitative tightening ; inflation ; monetary policy ; system dynamics ; transmission |
| Abstract [eng] |
The aim of this thesis is to examine the effects of quantitative tightening (QT) on inflation. Literature analysis has shown that it is challenging to estimate the potential impact of QT due to varying factors in the historical data and changing market conditions. VAR methodology employs the data from the United States over the period from 2000 to 2022. In addition, econometric analysis is complemented with a qualitative system dynamics model to provide visual representation of the underlying causal relationships between contractionary monetary policy and inflation. Findings of VAR indicate that QT reduces inflation through asset price and portfolio balancing channels in the short-term. The causal loop diagrams provide additional insights into the complex interdependencies of monetary policy transmission mechanism. |
| Dissertation Institution |
ISM Vadybos ir ekonomikos universitetas. |
| Type |
Master thesis |
| Language |
English |
| Publication date |
2023 |
