The U.S. Quantitative Easing Policy During the COVID-19 Pandemic and Its Influence on the Growing Number of Indonesian Retail Investors

Abstract

This research aims to determine whether the quantitative easing policy issued by the United States government to boost the United States economy during the Covid-19 pandemic has impacted stock price volatility on the Indonesia Stock Exchange (IDX), which resulted in the increasing number of individuals (retail) investors on the Indonesia Stock Exchange increased. The quantitative easing policy taken by the United States government in 2020 to ease the economic burden during the COVID-19 pandemic made JCI volatility high, eventually affecting individual (retail) investors seeking opportunities in the high volatility of the Indonesian capital market. This research examines using the theory of Financial Structure power by Susan Strange and used publicly available data as secondary data and primary data taken through observations of the Indonesian stock market or JCI and interviews with experts to find whether the U.S. quantitative easing policy had an influence on the growing number of new retail investors in Indonesia during the COVID-19 pandemic. This research discovered that the U.S. quantitative easing policy had indirect influence on the growing number of new retail investors in Indonesia during the COVID-19 pandemic. For future research, economic standpoints and theories are needed to get better analysis for this topic.