Date of Award


Degree Type

Doctoral Dissertation

Degree Name

Doctor of Business Administration (DBA)


Jack Welch College of Business

Dissertation Supervisor

Dr. Kwamie Dunbar

Committee Member

Dr. Abu Amin

Committee Member

Dr. Michael Gorman


The recent financial crisis has triggered questions regarding the role of the Federal Reserve Bank and the effectiveness of its intervention in the financial markets, post the crisis. This paper investigates the impact of huge spikes in excess reserves on the U.S. real gross domestic product. U.S. Federal Reserve in an effort to deal with the 2008 financial crisis instituted a series of programs aimed at taming the impact of the crisis. Through its emergency lending activities and Quantitative Easing (QE) programs, the Federal Reserve created a huge spike in excess reserves to levels not seen before. The empirical findings of this research show that a negative correlation exist between excess reserve and U.S. real gross domestic product. In fact the results show that a 5% increase in excess reserves results in a 0.1% reduction in real GDP activity. The analysis also indicates that an increase in excess reserves negatively impact full employment and asset prices. Additionally, Federal funds rate show a significantly positive association to real gross domestic product, possibly evidencing the Feds payment of interest on excess reserves.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.



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