Description
Write an essay on "Why quantitative easing is creating more problems?"
- give examples to support the points
- around 800 words
Explanation & Answer
Hello,The final answer has been uploaded.Good luck for now. :)
Quantitative Easing (Outline)
Introduction
Inflation
Lending Money
Devaluation of Currency
Unequal Distribution of Wealth
References
Quantitative Easing
1
Name
Assignment
Course
Instructor
Date
Quantitative Easing
2
Introduction
Quantitative easing is the Monetary Policy tool of the Central Bank through which Central
Banks acquire the Government securities to create an immense increase in money supply in the
market. The purpose of utilizing quantitative easing is to encourage Investment and Lending.
Quantitative easing is the potential tool of the central bank for managing and supporting lending
and investment but it has serious problems as well. (Joyce, M., Miles, D., Scott, A., & Vayanos,
D. 2012).
The numerous problems related to Quantitative Easing are given below along with the
examples:
1. Inflation
Quantitative easing creating problems like an increase in Inflation, the monetary policy
tool of central bank to increase money supply in the market by acquiring government securities
and decrease in interest rate to encourage investment and lending will increase the prices of the
goods co...