It is a type of budgetary policy in which money is inoculated into the economy of the country. The central bank buys various financial assets and bonds of government to enhance the economic activities. It is also termed as QE or ‘asset purchase’ and one of the unconventional forms of fiscal policy. The need for it arises when the inflation rate is negative and other budgetary policies become ineffective.
The money that is injected in this policy is either digital like the money in bank accounts or physical like cash. According to most of the researches, such type of financial policies improves wages, helps to keep the unemployment rate low, and make the economy strong.
What are the advantages and disadvantages of quantitative easing as an alternative
“The zero-lower-bound on short-term interest
Describe what is meant by quantitative easing by the Fed.
Using the information in this chapter, label each of the following
We have written the IS-LM model in the following terms
