Browsing by Author "Xie, Xuan"

The quantitative easing monetary policies released by the Big Four central banks since 2008 were expected to save these major developed economies from the financial recession, but there is a possibility that these policy changes have a spillover effect on other parts of the world. This thesis constructs a financial systemic risk index from stock market, money market, bond market and foreign exchange market for two groups of economies including 10 developed economies and 10 emerging economies and explained the hypotheses mathematically to prove that an increase in domestic interest rate will cause foreign systemic risks to decrease, while an increase in domestic money supply will cause foreign systemic risks to rise. Then, this thesis builds a time-series dynamic panel data model to evaluate the difference between the spillovers on the two groups, the difference among the Big Four spillovers and the difference between the spillovers of price-based and quantity-based monetary policies, thus answering the research questions and accepting the hypotheses which is consistent with the mathematical explanations. Moreover, the thesis provides possible suggestions for financial supervision and multilateral cooperation in the final part.