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Anonymous

16 Mar 2020

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What is Quantitative Easing and how does it affect the economy?

I saw the US Fed is trying to cut the interest rates to start this QE (Quantitative Easing) on the stock markets. How does it work and where we do we go from there?

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QE is when the central bank purchases government securities in order to introduce more money (increases supply of money). This lowers the cost of money and interest rate will be lower and leading to increase lending and investments. ​​​

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