The role of quantitative easing in distorting equity markets leading to a distortion in the labor market.

The role of quantitative easing in distorting equity markets leading to a distortion in the labor market. Research Paper example
Undergraduate
Research Paper
Finance & Accounting
Pages 10 (2510 words)
Download 0
THE ROLE OF QUANTITATIVE EASING IN DISTORTING EQUITY MARKETS LEADING TO A DISTORTION IN THE LABOUR MARKET Executive summary The US economy has faced severe financial breakdown during 2007 and since then it is suffering from the after effects of recession. The Euro zone is also victim to housing market crash during the same period and is still struggling to recover its economic condition…

Introduction

The governments in these countries have been actively taking policy measures, such as quantitative easing and easy monetary policies to boost up the economies and increase level of economic performance. Table of Contents Table of Contents 3 Central Bank Tools Discussion 5 Recent Recession and its effects 8 Equity Markets Bubble in Banking Sector 9 Compare QEs in US, EU and Japan 10 Effects on the Labour Markets 11 Conclusion 12 Works cited 13 Name of the Student Name of the Professor Course Number Date The role of quantitative easing in distorting equity markets leading to a distortion in the labour market Recessionary background The financial crisis that had hit the America and the European Union in the 2008 has come to an end in the 2009, according to economists. However, the effects of crisis have been lingering around for the last four years. The financial crisis had ruptured the financial system and has consequently affected the entire global economy. As the financial drought has neared its end in the year 2009, think tanks consisting of economist and politicians from around the world have been investigating the root cause of global crisis. The actual reason has yet remained a debatable discussion. ...
Download paper
Not exactly what you need?

Related papers

The role of accounting profession in development and regulation of modern capital markets since 1970s
It should be noted that the accounting profession can be divided into two major categories: the public accounting, ‘related to services such as tax and auditing’ (Bailey 1989, p.1), and the internal accounting, which refers to accounting services related to organizational activities (Bailey 1989, p.1). The accounting profession, in both of its forms, can affect the development of capital…
Role and Functioning of Stock Markets
Moreover, securities markets are further broken down into a primary market and a secondary market. A stock market is a private or public market for the trading of stocks or shares in companies at an agreed upon price. These include securities listed on a stock exchange as well as those traded privately, also known as over the counter securities. A stock market is also known as an equity…
Equity
Executive Summary: Owens & Minor Inc. Ticker: OMI Recommendation: Hold Price: $29.78 on 31.03.2010 Price target one year: $34.95 Highlights: A fortune 500 company headquartered in Richmond, Virginia. Wide distribution network throughout the United States. The provider of the broadest selection of branded products. Unique, superior products are offered through non competitive partnerships with…
The US government role in the bond market in 2011
This fueled bond investors’ purchase of US government debt.  During the week of 8/23/2010 investors continued to buy large amounts of US government bonds (treasuries), while selling off stocks.  Investors can usually buy treasuries directly or more commonly through bond funds.  Bond funds had attracted US$559 billion industry-wide in the past 30 months through June 2010. Bonds returned 16%…
The Role of Housing Markets in the 2008 Financial Crisis
In this essay the causative circumstances of the bubble are described. Later on there is a discussion about how the various financial decisions that were made which when coupled together with the shortage of proper structure for regulation in the financial sector led to the abnormal growth of the bubble to levels so dangerous that in the end led to the crash. The origin of the housing market boom…
DERIVATIVES MARKETS
Since the securities are listed and traded in the stock exchange, the secondary market is also called the stock market. In primary market, companies interact with investors directly while in the secondary market investors interact with themselves. In both cases, the capital market intermediaries play an important role .The secondary market, based on all available information, determines the price…
Role of high frequency trading in modern financial markets
High Frequency Trading or HFT used propriety trading strategies which allow traders and firms to conclude transactions within the micro-seconds. With the help of sophisticated computer algorithms as well as other tools positions can be easily taken and closed within seconds or less than a second to take advantage of the smallest movements in the prices of the securities. HFT firms are not only…