Abstract:

To study the impact of US’s quantitative easing monetary policy on China’s foreign trade, firstly a qualitative analysis of the four channels of the impact is made, and its significance and difference of each period based on structural vector auto regression (SVAR) model is studied.The results show that in the short-term, the policy will improve China’s trade balance through promoting US economy; in the long-term, the policy deteriorates China’s trade balance through the suppression of exports caused by commodity price rising and promotion of imports caused by foreign direct investment increasing

Key words: US’s quantitative easing monetary policy, impact on trade channel, foreign trade, structural vector auto regression model