European Central Bank’s Quantitative Easing Impact on Lithuanian Stock Market Cover Image

Europos centrinio banko „kiekybinio švelninimo“ programos įtaka Lietuvos nuosavybės vertybinių popierių rinkai
European Central Bank’s Quantitative Easing Impact on Lithuanian Stock Market

Author(s): Česlovas Bartkus
Subject(s): Financial Markets
Published by: Panevėžio kolegija
Keywords: The European Central Bank; the stock market; "quantitative mitigation of";

Summary/Abstract: The main aim of this work is finding and measuring the Quantitative Easing (QE) impact Lithuanian stock prices. In the first half of this article there are described the main instruments of monetary policy with biggest attention on newest and most unexplored of them - QE. For the reason that this research investigates relationships of QE and stock markets, there are described QE programs made in Japan, USA and UK. Rapidly rising trends in stock markets were noticed in these countries during the QE. So, the same dynamic were expected in European stock markets when European Central Bank launched similar monetary instrument on 2015 January 1st. In the second half of this work are made researches and shown the trends of Eurozone’s and Lithuania’s stock prices. For reasons that Lithuania is new Eurozone member (since 2015) and economy is not strong like German, France or Italy, Lithuanian stock market increased by 11 % in the first five month of QE. While German companies gained 30 % and European overall stock index increased by 26,5 %. All work based on literature analysis of different authors from different countries and information from stock exchange markets.

  • Issue Year: 11/2015
  • Issue No: 1
  • Page Range: 121-125
  • Page Count: 5
  • Language: Lithuanian