Author(s)

Chien-Jung Ting

Department of International Business and Trade, Shu-Te University, Kaohsiung.

Because Taiwan is export-oriented and highly connected with the US in terms of trade, Quantitative Easing (QE) of the Federal Reserve System (FED) had significant negative impacts on Taiwan. We examine several possible solutions for these negative impacts via the Delphi technique and the Analytic Hierarchy Process, synthesizing judgements from experts. The empirical results point out that a “negative influence on international trade affairs” is the predominant main criteria, and “improvement of international trade and investment regulations”, “easing the impact of increases in the prices of raw materials obtained internationally”, and “raising the competitiveness of the nation’s export industry” are important sub-criteria. Especially, “improvement of international trade and investment regulations” corresponds with the global imbalance phenomenon. To strengthen the trade environment in Taiwan, experts suggest that an overall improvement in balance of payment is necessary that encompasses investment activities and trade regulations. We look forward our results offering useful suggestions.

Quantitative Easing(QE), Global Imbalance

Ting, C. (2018) Exploring Solutions for the Negative Impact of US Quantitative Easing on Taiwan. Journal of Mathematical Finance, 8, 14-26. doi: 10.4236/jmf.2018.81002.