Abstract:
After the Lehman Brothers collapsed in September 2008, the conventional monetary policy tools were insufficient to deal with liquidity problem in the economy due to the disruption of the transmission mechanism of the monetary policy. Therefore, unconventional monetary tools have become popular, and that different central banks mostly have used unconventional monetary tools all around the world. This thesis focuses on investigating the comparison of the quantitative easing monetary policy, which are implemented by the European Central Bank and Federal Reserve and its effect on the government bond yield curve over the period 2008-2016.
