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Corresponding Author:
Deergha Raj Adhikari, III College Of Business Administration, University Of Louisiana At Lafayette, Louisiania, USA

Effect of Recent U.S. Monetary Policy on the Balance of Trade.

(pp. 1-10)
JEL classification: C13, E32, E58, F41
Keywords: Business Fluctuations and Cycles, Central Banks and their Policies, Causality, Open Economy Macroeconomics

Abstract

Our study develops a model of the balance of trade, which is a function of domestic (U.S.) and foreign real GDPs, exchange rate of U.S. dollar, and monetary policy (credit easing) dummy. We then empirically test the model on a panel data for the U.S. and BRICS countries over the period, 1995-2014, and find that the Fed’s quantitative easing has no effect, whatsoever, on U.S. balance of trade.


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