Economic supply shocks and fiscal expansion coupled with monetary expansion are suspected causes of the rise in inflation that we observe in most of the developed and developing economies today. In this paper we look at the effect of the government budget deficit(surplus) or fiscal policy stance, and quantitative easing on inflation while controlling for economic shocks using the method of cointegration as we find data series in our model to be integrated of order one and having support of one cointegrating equation between the variables. Our analysis is performed using Federal Reserve monthly data from 1994 to 2022 using Two-Step Engle-Granger (1987) method and Fully Modified OLS by Phillips and Hansen (1990). We compare these models to Auto Regressive Distributed Lag model of Pesaran and Shin (1998) which allows for analysis irrespective of the order of integration to provide for more robustness regarding the estimated relationships in cases of misspecification of stationary properties in our time series. Both cointegrating models lend support to the initial postulated relationship where expansionary fiscal policy has significant positive impact on the price level during the long run but also enhances the effect of the Quantitative Easing on the price level as the interaction term between these variables is significant, indicating that during the periods of expansionary fiscal policy, expansionary monetary policy through Quantitative easing has bigger effect. Our analysis is performed controlling for effect of economic shocks and price of real exchange rate on the price level. Stability of the cointegration model tests reveal presence of structural breaks which when included in the cointegrating equation change the importance of the impact that fiscal stance has on inflation and reveal that inflation is mainly result of the expansion in central bank assets after 2008, which coincides with period of unconventional monetary policy

Abstract This scientific paper examines the relationship between macroeconomic variables whose performance is measured under the implementation of Quantitative Easing in the US, by estimating vector autoregression (VAR) and Impulse Response Function with monthly data from US Federal Reserve, observed during the period January 1994-January 2022. Variables include: Consumer Price Index (CPIAUCSL); Industrial Production (INDPRO); Unemployment Rate (UNRATE); Interest Rates, Government Securities, Government Bonds (INTGSBUSM193N); Volatility Index (VIXCLS), Real Broad Effective Exchange Rate (RBUSBIS), Federal Surplus or Deficit (MTSDS133FMS), Money Supply M1 (WM1NS), M2 (WMNS), M3 (MABMM301USM189S). An evidence on macroeconomic variables of Consumer Price Index and Industrial Production when evaluating the effectiveness of QE is provided.

This scientific paper examined the relation between conventional and unconventional monetary policy, with an anticipation to provide a comprehensive assessment of how they behave with the goal of mitigating financial distress, at the state level, influencing global economy. The sampling frame involved five variables related to the US Federal Reserve and five variables related to the European Central Bank, observed during the period 2015-2020 (data for January, April, July and October of each year, regarding every research variable were collected). These variables included: Euro Area Inflation Rate, ECB Bonds Yields, Euro Area Broad Money Supply (M2), Euro Area Unemployment Rate, Debt to GDP; and US Inflation Rate, US Treasury Yields, US Broad Money Supply (M2), US Unemployment Rate, Debt to GDP. Accordingly, two adequate research models were created. Research methodology focused on examining the accuracy of the hypotheses using SmartPLS 3 as a tool for conducting mediation analysis. Research implications suggest that Quantitative Easing caused a significant increase in the Federal Reserve’s and European Central Bank’s balance sheet, especially during the global financial crisis (2007-2008) and during the post-crisis, recovery period. In terms of policy recommendations, monetary authorities need to have policy sets ready in place, in order to know how to behave during and post an economic crisis. This scientific paper will serve as an accurate source of information to future researchers in the field of conventional and unconventional monetary measures, because the work is well systematically organized, clear for interpretation and provides an extensive insight into the Fed’s and ECB’s transmission mechanisms of monetary policy.

The aim of the study is to investigate consumer attitudes towards specific Customer Social Responsibility Activities in Bosnia and Herzegovina. In order to support this research, a case study method, combined with qualitative and quantitative research methods (referenced survey) was used. To get an insight into the companies’ perspective, when it comes to an engagement in the employment practices, as an integral part of Corporate Social Responsibility, data regarding “The Most Desirable Employer” project- “Najpoželjniji poslodavac”, organized by Kolektiv d.o.o.-MojPosao.ba, for years 2020, 2019 and 2018 will be analyzed. The study should illustrate the exact scenario of customer loyalty in Bosnia and Herzegovina to the companies included in CSR activities and contribute to an advancement of overall knowledge in the field of CSR in Bosnia and Herzegovina. The directing outcome uncovers those corporate capacities have a critical part in fortifying the relationship between corporate social responsibility drives and customer trust in Bosnia and Herzegovina, in light of the fact that high corporate capacities with professional corporate social responsibility actions lead to high faithfulness of customers. The examination features the meaning of the corporate social responsibility activities, which are obligatory for authoritative achievement and guides the policymakers of companies, supervisors, and researchers.