The purpose of this study is to examine whether the implementation of quantitative easing (QE) and quantitative tightening (QT) in the United States has detracted from the integrity of the country’s macroeconomic environment. In other words, does QE impact macroeconomic stability? Then, evaluate implications and externalities of stability as they relate to sustainability efforts. QE and QT are relatively new phenomena, understanding their effects and implications for the greater economy is a worthwhile endeavor, not least because QE is a current practice of so many central banks internationally.

This study has two parallel investigations; first, a time series analysis conducted with a VAR model investigating the relationship of QE/QT usage by the Federal Reserve (Fed) on the macroeconomic stability of the United States. The data used in this study includes 242 monthly observations spanning January 2003 - February 2023. The second, is an OLS regression analysis evaluating whether macroeconomic stability is potentially correlated with sustainability efforts. For this study, 23 annual observations spanning 1995 – 2017 were used. Due in part to the general unavailability of genuine progress indicator (GPI) data.

Based on the analysis conducted using a VAR model at lag t-4, QE has a positive relationship with Producer Price Index (PPI) and Federal Funds Rate (FFR). This is in accord with previous empirical literature on the subject. However, the second path of discovery failed to yield significant results with regard to the link between macroeconomic stability and sustainability efforts. Mention of this study’s limitations as well as avenues for future research can be found in the conclusion of this study.