How quantitative easing affects the real economy and interest rates

Abstract

This thesis will present the strategies and monetary policies that were followed by the Central Banks of Europe and United States respectively, by the time the economic crisis broke out. The analysis is trying to make clear whether the two different strategies helped the real economy or not. Before entering the analysis, basic concepts are being clarified for better understanding. Then, after presenting data and facts about the asset purchasing, the conclusions will be extracted. The basic question is how the two programs of Quantitative Easing affected the real economy and to what extent. The answer comes based on a combination of researches developed by researchers who were active during the crisis period.