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Questions tagged [quantitative-easing]

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Quantitative easing

Quantitative easing is an unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the ...
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Does the Fed grant free money to itself durring QE? [duplicate]

From my understanding of the credit theory of money, private banks credit newly created money to borrowers in exchange for an IOU from the borrower. Likewise, the Fed credits money to private banks ...
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Question on money supply related to new crypto project

Following questions are related to a crypto project I am working on and proper answers are of utmost importance to this concept's development. I unfortunately lack expert knowledge about money supply ...
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Elasticity of demand for loanable funds

If there is low confidence in the economy will this reduce the elasticity of demand for loanable funds because for a given decrease in the rate of interest, demand for loanable funds would be less ...
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How does changing the Bank of England base rate work?

If we assume the demand for money (D above) is fixed in this position (for the purposes of this question), and supply (S) is fixed in this position, then how can the BoE change market interest rates (...
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In quantitative tightening do banks have no choice in refusing to buy bonds from Central Banks (mainly Federal Reserve)

In light of the recent unease about interest rate rise, I've been taking a growing interest in how our economy actually works, something I've been trying to avoid. So this forum is a way for me to ...
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Unconventional quantitative easing

This question is about dropping tax rates temporarily as an alternative to usual quantitative easing. In fact, there are two questions. Would this be an economically sound policy as I tend to ...
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Extension on the suspension of national debt ceiling

So I just want to make sure i got this right, The national debt ceiling was suspended, i.e. the government can now freely spend until Dec.8, which they "say" was for providing $15bn in hurricane ...
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When the ECB does QE, does it print new money?

I knew that when the Fed in the US buys bonds through Quantitative Easing, it does so using money it has from previous profits and that it doesn't print new money. However, I was reading this article ...
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Fed, Asset prices, and the Economy

Often you hear people speak about how the Fed has created a fake economy, or one that is propped up with their support, and that they have artificially raised asset prices. What does this exactly mean?...
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Print money to buy and nationalise companies

If there's a water company worth £4 billion making £500 million a year profit, the government "prints" £4 billion and buys the company, then every year "burns" half the profit and reinvests the other ...
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Do credit cards create more printed money

As far as I know, when people take a loan from a bank, most of the loan value is electronically printed money, i.e. money that did not exist before. Is it also what happens with consumer credit cards? ...
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During deflation, is there any risk on 'printing' money?

Take a specific example: Japan. In the last several years, the central bank of Japan has eased monetary supply for many trillions of dollars, but the CPI decreased in 2016. My question: is there any ...
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What's the difference between Quantitative Easing and regular central bank operations?

Most articles describe QE as purchasing government securities on the market. I thought that was what ordinary day to day operations of the central bank were in their efforts to maintain a target ...
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What stops a government in partnership with its central bank from lowering interest rates and then borrowing at this lower rate to fund investments?

For example, in the UK, after the Brexit vote, the Bank of England decided to lower reserve interest rates to 0.25%. This, as I understand it, has the knock on effect of lowering the interest rates of ...
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Screw foreign investment, lets just print money

We often hear of countries securing foreign investment. Stores like this are trumped as major achievements. Foreign investment also has criticisms - profits generated in a country end up going abroad, ...
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How much money was distributed during quantative easing?

I am trying to discover how much money was created as a result of quantative easing. I do not want to start a political debate. But, I am genuinely interested in learning how much money was signed ...
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Limits to Quantitative Easing Programmes

I have been reading recently on the quantitative easing programmes by the ECB and the BOJ, see http://www.cnbc.com/2016/04/07/what-the-bank-of-japan-boj-will-do-now-that-negative-rates-have-...
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Why hasn't Quantative Easing created a surge in inflation, or hyperinflation?

From what I understand, Quantitative Easing (QE) is the buying, by the Central Bank, of bonds and other financial assets with high-powered money (or money created by the CB for this purpose). If I ...
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Why doesn't the ECB implement the same fiscal and monetary policy that the FED used to save the US economy?

If the Fed managed to save the US economy with their liberal expansionary policy, why doesn't the ECB follow suit if it is much more efficient in reducing unemployment etc? Also, why did ...
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What does the Federal Reserve intend to do with bonds it has purchased under QE?

In New York Magazine's interview with investor Mike Burry (made famous by The Big Short), he claims Quantitative Easing has left the Federal Reserve with an extraordinarily high leverage ratio: ...
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Is Quantitative Easing an asset-swapping or money-printing exercise by the Federal Reserve?

Shortly after 2008, there were prominent commentators such as Jim Rogers who called Ben Bernanke an idiot and condemn him for printing money. However, there were also articles that suggest ...
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Why does Fed buying mortgage backed security help lower the interest rate for mortgages?

If Fed buys more mortgage-backed securities, does it necessary mean that the interest rate will go down? Consider the supply and demand market for mortgages and let us assume the supply side is the ...
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“Printing” money to build housing

If the government prints money to build housing for cheap rental. Is that a good idea? Or will it damage the economy causing inflation? Rent will generate income. Low rent will give poorer more ...
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How is monetary policy sustainable, or even fair, in the current economy? [closed]

I've just read Money Creation in the Modern Economy, an article published by the Bank of England. I'm trying to wrap my head around this from multiple points of view, since it brings about a lot of ...
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Quantitative Easing in Africa

I am currently doing a research work on quantitative easing and can't find any example of it occurring in Africa. Have any African central banks ever used QE?
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Europe Quantitative Easing

Okay, this is from latest events. Countries like USA & Japan have successfully used QE to stimulate the economy, but what stops European Central Bank from implementing it? If they decide to use ...