Senior Honors Projects, 2020-current

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.

Date of Graduation


Document Type


Degree Name

Bachelor of Science (BS)


Department of Economics


Vipul Bhatt

S. Kirk Elwood

Andre Neveu


The 2008 recession affected the American economy more than any recession since the Great Depression. Unlike its response to the Great Depression, the Federal Reserve aimed to stimulate the economy through all means in its power. However, the Federal Reserve’s conventional monetary policy tools were not viable options due to the zero lower bound. As a result, the Federal Reserve pursued an unconventional monetary policy tool known as quantitative easing which involved purchases of long-term assets on a scale never before seen in the United States. Since its inception, quantitative easing has faced significant scrutiny over its merit and has been the focus of research that has resulted in conclusions ranging from a complete failure to a resounding success. This paper focuses on quantitative easing’s effect on the macroeconomy and finds that although quantitative easing was effective in increasing inflation and lowering rates on long-term Treasuries and mortgages, there was a negative effect on real economic activity, casting doubt on how effective these programs were on stimulating the economy as a whole.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.