Problems of Quantitative Easing
A look at some problems and limitations of quantitative easing.
Readers Question: I was wondering if anyone could help me with how Quantitative easing can possibly reduce a budget deficit? and what are the downsides of quantitative easing?
The Bank of England has pursued a policy of quantitative easing. This has involved creating £275bn money and using this created money to buy assets such as government bonds. The aim is:
- To reduce interest rates on government and corporate bonds.
December 16, 2011
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Posted by Cameron OSullivan
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