Abstract：Due to the international nature of U.S. monetary policy and the alienation of modern financial markets, making any changes in the U.S. QE will have a huge impact and shock to the global market. Since 2014, the U.S. has started QE exit policy, which means the end of five-year banquet of the global cheap capital, and will inevitably lead to the changes in investors’ risk preference, reversal of global capital flows, significant adjustments in interest structure of financial markets, and fundamental reversal of the market expectations. This will give the global markets, especially emerging markets more uncertainty. Coupled with the uncertainty of QE exit policy, market uncertainty is rising. Thus, QE exit will be the 2014 world's largest market risk. In response, the Chinese government should pay close attention and choose a proper response.
Keywords: U.S. Quantitative Easing Monetary Policy, QE Exit Policy, Forward-looking Guidance of Interest Rate, Uncertainty Effect of QE Exit
source:Finance & Trade Economics ,No5,2014