Quantitative easing in the United States in 2020 after the covid-19: effects on U.S. economy and implications from historical policy about how to improve the policy

Abstract

The quantitative easing program, an unconventional monetary policy, was implemented in the U.S. for four rounds till 2020 to stimulate the economy during some recessionary times. This paper discussed the instrument and the objective of the four rounds of quantitative easing policy and the similarity of the aims. The paper focused on the impacts on the U.S. economy of the policy, both the positive and the negative. The policy led to economic growth, combating the recession and possibly induced inflation. They also lead to the depreciation of the U.S. dollar in different periods and increase income inequality and wealth inequality. Then this paper discusses the policies that can be used to deal with the problem that may happen during the fourth round of the quantitative easing program, which mainly focuses on supply-side policies.