QE Flashcards
1
Q
QE process
A
With permission from the treasury , Bank of England created digital money increasing money supply
Bank of England buy finanacial assets mostly government bonds from secondary capital markets
Bonds are more expesive as coupon price is fixed yield falls and market price increases
Reducing overall cost of browsing in economy , as investors drive in other financial markets in search to get return , driving yield down in those market’s
Increasing consumptions and investment
Increased spending and employment. returning inflation to 2% target