Asked by EuniceEconomics 📈

What is quantitative easing in macroeconomic?

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Husain Mukadam

Make Learning Fun Again! MSc | BSc | 4yrs+ exp. | DBS Certified✔️

In the UK, Quantitative easing is an ‘unconventional’ form of monetary policy that the Monetary Policy Committee has carried out in order to stimulate the economy when interest rates are already low. The ultimate aim of this is to boost spending to reach their inflation target of 2%. Quantitative easing is sometimes called ‘QE’ or just ‘asset purchases’. The Monetary Policy Committee makes decisions on quantitative easing at the same time as it makes its interest-rate decision.  Quantitative easing is commonly known as 'printing money', though it does not necessarily involve literally printing more money. Instead, they create new money digitally. Hope that helps! ☺️

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