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Quantitative Easing is the purchase of bonds by the central bank. The purchases leave private banks with balances at the central bank (reserves). The private banks are “lending” the Fed money (not tha …

It’s an editorial opinion, and it’s hard to give it a technical meaning. The distinction being made in the text is between growth in the “real economy” - which would be measured by GDP and/or consum …

The question as currently stated is too long, and contains misleading statements. I will answer the core of the question, which I believe is as follows: why don’t countries use “helicopter money” to r …

It changes over time. Any textual summary is probably going to end up out of date. If the purchases are a large portion of securities outstanding - which is the case - the central bank has no choice b …

Will this action [QE] tend to depreciate the country's currency against USD because money supply has increased decreasing the value of money? There is considerable market folklore about this topic. …

As a comment noted, without a reference, it is difficult to give a definitive answer. However, I have often run into similar phrasing in financial market commentary, so I will offer an initial guess a …

The question as it stands now contains points that are debatable. So I will just attempt to answer a similar question; the question could be revised in response. There are a number of other questions …

As noted in comments, the reason why the RBA acted the way it did most likely comes down to its legal framework. Before the 2020 crisis, very few countries allowed their central bank to directly fund …

One initial point: you refer to "printed money", which would normally be restricted to currency in circulation (notes and coins); the parts of the money supply that are electronic are literally not pr …

As I noted in a comment, the description in this question of real world central banks is overly simplistic. Central banks do not make proportional changes to the monetary base to set the price level. …

The unwind depends upon what the central bank did. If the central bank did a repurchase agreement (“repo”) or lent against assets for a fixed time, the agreement automatically unwinds at the term of …

This question is too long. To be useful for this website, questions need to be questions, without filler text. You should also try to avoid suggesting answers, as if your suggestion is wrong (as happe …

At the time of writing this answer, the Federal Reserve pays 0.1% on reserves: link to Fed webpage. Banks have no incentive to lend Fed Funds at rates below 0.1%, as they can keep the excess reserves …

The bonds mature and pay the principal. However, central banks tend to reinvest the principal, keeping their holding amounts relatively stable over time. This can be validated by looking at central ba …

This is veering into the direction of an opinion-based answer, but I would argue that there is no particular evidence that the Fed “needs” to reduce the size of its balance sheet. If the Fed wanted …