Using Quantitative Easing to Stimulate the Economy

Quantitative easing (QE) is an economic strategy—monetary policy, wherein, the central bank deliberately buys financial assets or government bonds in large amounts to pump money directly into the economy. These financial assets are purchased from commercial banks and other financial institutions. By all implication, the prices of the financial assets will increase and their yield lowered while increasing money supply at the same time.Nancy Davis, Portfolio Manager of the IVOL ETF and Founder of Quadratic Capital says defines quantitative easing as “an unconventional monetary policy tool used after conventional tools have become ineffective,”—a useful tool that has helped the US…
Source: Using Quantitative Easing to Stimulate the Economy

Please follow and like us:

Please follow & like us :)