Quantitative easing

To gain a better understanding of quantitative easing (QE) follow this link to watch a film from The Daily Telegraph website:


The debate on whether QE has had a positive effect on the real economy or whether it has simply inflated prices in asset markets might well prove inconclusive but you need to be able to evaluate the policy, so follow these links for some arguments in favour and against QE:

In favour






In summary


Overall it might take time to understand the full consequences of QE, particularly on inflation.  However, some have argued that thanks to the liquidity trap created by very low interest rates the Bank of England had no alternative.


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