• I. Shkodina V. N. Karazin Kharkiv National University, Ukraine
  • O. Melnychenko Professor at Department of Finance, Poland
  • M. Babenko SHEI «Banking University», Ukraine




financial market, quantitative easing policy, monetization of public debt, zombie economy, labour productivity


Based on the analysis of the impact of quantitative easing policies on the global economy, there was concluded that the world’s largest central banks and widespread debt stimulation have created the model of economic growth. This model was based on the productivity growth. The lack of productivity growth in the developed world, the active integration of developing countries (first of all China and India) in the global economy have completely changed the directions of global financial flows and caused fundamental geopolitical changes.

Striving to confront the cyclical nature of the economy, government regulators transform the global economy into a «zombie economy». There are unprofitable companies and banks, which operate on cheap money from central banks and government bailouts. The monetization of fiscal policy transforms the risks from governments to central banks and destroys their independence.

We concluded that the strategy of tackling the global economy through cheap credit is doomed to failure because governments do not solve the problems of real economy, productivity increase, management of public and corporate debt, stagflation, unemployment, and increase in income differentiation.

Nowadays, in the context of COVID-19 pandemic, central banks use the new and forgotten old tools to expand economic activity (so-called QE and «Not QE»). These tools provide the necessary stimulus only in the short-term period, but in the long term period it will inevitably lead to serious disparities, undermine the market mechanism, increase the administrative influence and lead the global economy to a choice between depression, unemployment, hyperinflation or systemic collapse.

We believe that the global coronavirus pandemic stimulates the scientific debate on rethinking monetary policy goals and instruments, as the use of various «non-standard tools» has repeatedly proven ineffective in combating crises and it has helped only to create new global imbalances and crises.

Author Biographies

I. Shkodina, V. N. Karazin Kharkiv National University

Doctor of Economics, Professor

O. Melnychenko, Professor at Department of Finance

Doctor of Economics, Doctor habilitowany

M. Babenko, SHEI «Banking University»

Ph. D. student


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How to Cite

Shkodina, I., Melnychenko, O., & Babenko, M. (2020). QUANTITATIVE EASING POLICY AND ITS IMPACT ON THE GLOBAL ECONOMY. Financial and Credit Activity: Problems of Theory and Practice, 2(33), 513–521. https://doi.org/10.18371/fcaptp.v2i33.207223



Economic-theoretical aspect of Financial Credit System's development