Browse > Article
http://dx.doi.org/10.14400/JDC.2021.19.3.161

Analysis of the Ripple Effect of the US Federal Reserve System's Quantitative Easing Policy on Stock Price Fluctuations  

Hong, Sunghyuck (Baekseok University, Division of Smart IT)
Publication Information
Journal of Digital Convergence / v.19, no.3, 2021 , pp. 161-166 More about this Journal
Abstract
The macroeconomic concept represents the movement of a country's economy, and it affects the overall economic activities of business, government, and households. In the macroeconomy, by looking at changes in national income, inflation, unemployment, currency, interest rates, and raw materials, it is possible to understand the effects of economic actors' actions and interactions on the prices of products and services. The US Federal Reserve System (FED) is leading the world economy by offering various stimulus measures to overcome the corona economic recession. Although the stock price continued to decline on March 20, 2020 due to the current economic recession caused by the corona, the US S&P 500 index began rebounding after March 23 and to 3,694.62 as of December 15 due to quantitative easing, a powerful stimulus for the FED. Therefore, the FED's economic stimulus measures based on macroeconomic indicators are more influencing, rather than judging the stock price forecast from the corporate financial statements. Therefore, this study was conducted to reduce losses in stock investment and establish sound investment by analyzing the FED's economic stimulus measures and its effect on stock prices.
Keywords
FED; Prediction; Stock analysis; AI. Big data; Text mining; Macroeconomic;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Fred Economic Data. (2020.12.24.) Initial Jobless Claims. https://fred.stlouisfed.org/series/ICSA
2 Fred Economic Data. (2020.12.24.) Unemployment Rate. https://fred.stlouisfed.org/series/UNRATE
3 Fred Economic Data. (2020.12.24.) Existing home sales. https://fred.stlouisfed.org/series/EXHOSLUSM495S
4 Amal, M. (2016). Determinants of Foreign Direct Investment: Theoretical Approaches. Foreign Direct Investment in Brazil, 9-62. doi:10.1016/b978-0-12-802067-8.00002-5
5 Hong, S. (2020). A study on stock price prediction system based on text mining method using LSTM and stock market news. The Society of Digital Policy and Management, 18(7), 223-228. https://doi.org/10.14400/JDC.2020.18.7.223   DOI
6 H. S. Hwang. (2018). Daily Stock Price Forecasting Using Deep Neural Network Model. Journal of the Korea Convergence Society, 9(6), 39-44.   DOI
7 Hong, S. (2020). Research on Stock price prediction system based on BLSTM. Journal of the Korea Convergence Society, 11(10), 19-24.   DOI
8 Hong, S. (2020). A Research on stock price prediction based on Deep Learning and Economic Indicators. Journal of Digital Convergence, 18(11), 267-272.   DOI
9 Hong, S. and Han, J. (2020). Research on Stock Prediction Technology using RNN and YText Miner. Test Engineering and Management, 83, 4315-4321.
10 Ding, X., Zhang, Y., Liu, T., & Duan, J. (2015, June). Deep learning for event-driven stock prediction. In Twenty-fourth international joint conference on artificial intelligence.
11 Akita, R., Yoshihara, A., Matsubara, T., & Uehara, K. (2016, June). Deep learning for stock prediction using numerical and textual information. In 2016 IEEE/ACIS 15th International Conference on Computer and Information Science (ICIS) (pp. 1-6). IEEE.
12 Tobin, J. (1998). World economy and financial markets. Japan and the World Economy, 10(3), 377-379. doi:10.1016/s0922-1425(98)00038-3   DOI
13 Investing.com. (2020.12.24.). S&P 500(SPX), https://www.investing.com/indices/us-spx-500
14 Guru Focus. (2020.12.24). Buffett Indicator: Where Are We with Market Valuations?. https://www.gurufocus.com/stock-market-valuations.php
15 S. H. Lee. (2020.12.24). Fed to release 3600 trillion won. https://biz.chosun.com/site/data/html_dir/2020/07/14/2020071401667.html
16 K. H. Kim. (2020.12.24). Fed's policy to increase the amount of money in the U.S. is good for stock prices for more than two years. https://www.chosun.com/economy/stock-finance/2020/09/01/QJPQO4TUNZGM5KG337MDSZOPXM/
17 Fred Economic Data. (2020.12.24.) Monthly Supply of Houses in the United States. https://fred.stlouisfed.org/series/MSACSR
18 J. B. Ryu. (2020.12.24). Fed freezes'zero interest rate'... Retention by 2023 Preview. https://www.yna.co.kr/view/AKR20200917005700071