Quantitative easing

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Concept.png Quantitative easing Rdf-entity.pngRdf-icon.png

Quantitative easing (QE) is a monetary policy whereby a central bank purchases predetermined amounts of government bonds or other financial assets (e.g., municipal bonds, corporate bonds, stocks, etc.) in order to inject money into the economy to expand economic activity.[1]

QE is an unconventional form of monetary policy, which is usually used when inflation is very low or negative, and when standard monetary policy instruments have become ineffective.[2]

Quantitative tightening (QT) does the opposite, where for monetary policy reasons, a central bank sells off some portion of its own held or previously purchased government bonds or other financial assets, to a mix of commercial banks and other financial institutions, usually after periods of their own, earlier, quantitative easing purchases.[3]


 

Related Document

TitleTypePublication dateAuthor(s)Description
Document:Antidote to Privatisation is Public OwnershipReport19 September 2022Prem Sikka"The report recommends progressive taxation and democratisation of corporations, so that they serve the interests of communities and people rather than just shareholders and executives. It recommends that essential industries, such as energy, be brought into public ownership. It shows that there is very little cost associated with bringing energy, and other essential industries, into public ownership."


References

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