The current bachelor thesis deals with the impact of the Quantitative Easing of the European Central Bank on the German benchmark index DAX. The paper examines the questions how an expansive monetary policy can manipulate the economic environment and how those factors impact the equity capital markets. The objective of this thesis is to evaluate the short- and medium term movements of the DAX and to explain how those movements are influenced by decisions and announcements of
the European Central Bank. For that purpose, direct The current bachelor thesis deals with the impact of the Quantitative Easing of the European Central Bank on the German benchmark index DAX. The paper examines the questions how an expansive monetary policy can manipulate the economic environment and how those factors impact the equity capital markets. The objective of this thesis is to evaluate the short- and medium term movements of the DAX and to explain how those movements are influenced by decisions and announcements of the European Central
Bank. For that purpose, direct economical and indirect psychological factors, are examined. By analysing the QE and the economic factors, which are influenced by it, it should become obvious that decisions of the European Central Bank and statements of Mario Draghi affect the DAX significantly in the short and medium term.
Furthermore, they increase its intraday a short term volatility. This phenomenon is above all achieved through the direct economical impacts on the general economic development by the QE. Furthermore, also psychological factors not only influence the decisions of investors and shareholders, but play also a crucial role for the developments of the stock markets.
The thesis is divided into a theory part and an analysis part. In the first part of the thesis the theory of quantitative easing should be explained (e.g. AS-AD / IS-LM model). The tasks of the ECB should also be explained.
Important: At the beginning of the thesis the following three research questions should be included and listed:
Research question 1: To what extent do decisions of the ECB’s Quantitative Easings influence the DAX?
Research question 2: Do the decisions of the ECB’s Quantitative Easings lead to an upswing of the DAX in the short and medium term?
Research question 3: Which forecast can be given on the basis of the analysis of the DAX from 2015 to 2018 for the development until 2019?
This theoretical part is followed by the empirical part. In this part, you only want to analyze. No more theory shall be explained. Please apply the theory to practice now.
Please create many graphs and illustrations to explain the analyses.
The table of contents of the empirical part should be structured as follows:

1. Empirical Part
   2.1 Selection of the methodology (here, please say that you want to analyse the DAX for three years to answer question 1-3 and describe the method you are going to use)
    .2 Operationalisation (please describe why you investigate the three years, how they proceed etc.)
   2.3 Analysis
   2.3.1 Analysis of the Development of the German Stock Index in 2015
   2.3.2 Analysis of the Development of the German Stock Index in 2016
   2.3.3 Analysis of the Development of the German Stock Index in 2017
   2.4 Development of a forecast for 2019
2. Results
   3.1 Answering the research questions (summarise and answer again all answers from question 1 to question 3)
   3.2 Conclusion
   3.3 critical reflection
   The table of contents for the theoretical part (first part) can be suggested by the author.
   Again: It is very important that the three above mentioned questions are listed at the beginning of the thesis and answered in detail at the end of the thesis.