Understanding the Distinction Between China's "QE" and Quantitative Easing in Developed Economies

As a result of various economic shocks, such as the recession, the European debt crisis, the global financial crisis, and the COVID-19 pandemic, developed economies like the United States, Japan, and the euro area have gradually reduced their policy interest rates to nearly 0 percent. They have also implemented strategies like quantitative easing (QE) and Operation Twist, which involve expanding the balance sheets of central banks and restructuring their assets. These measures have had a significant and far-reaching effect worldwide. In light of these circumstances, China has also encountered a complicated financial situation in response to the global crisis. This study does a comparative analysis of the QE policies of the United States, Japan, and the Eurozone. It utilizes research and literature review methods to examine how China might gain insights from the QE measures employed in these advanced economies. China's economic system and financial features are distinct, leading it to adopt a different approach in response to the financial crisis. Instead of resorting to QE like developed countries, China employed a combination of fiscal and monetary measures to address the crisis. This study aims to enhance comprehension of the significant influence of QE on the global economy and finance by more research and analysis. Furthermore, it seeks to investigate more inventive policy instruments to facilitate global economic development.