The term quantitative easing II became fashionable post the global economic crisis in 2008, following which most governments across the globe had to pump in huge amount of liquidity in the markets to tide over the crisis. Quantitative easing is the process of infusing money into the system by creating ‘new money’ and eventually buying financial assets like bonds and corporate debt from financial institutions in the country. This is done by central banks through what is popularly known as open market operations. The idea essentially is to make adequate money in the system to spur consumption demand in any economy.
Quantitative easing II is the popular phrase used in the context of American economy these days as the US Federal Reserve Board is touted to go for another round of quantitative easing to consolidate the recovery of the American economy, which has slowed down because of fundamental reasons such as lower consumption and job losses and escape of capital to other economies.
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Quantitative easing II is the popular phrase used in the context of American economy these days as the US Federal Reserve Board is touted to go for another round of quantitative easing to consolidate the recovery of the American economy, which has slowed down because of fundamental reasons such as lower consumption and job losses and escape of capital to other economies.
Read more.
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