Questions tagged [quantitative-easing]
72 questions
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During deflation, is there any risk on 'printing' money?
Take a specific example: Japan.
In the last several years, the central bank of Japan has eased monetary supply for many trillions of dollars, but the CPI decreased in 2016.
My question: is there any negative effect for Japan to ease so much…
shintaroid
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"Printing" money to build housing
If the government prints money to build housing for cheap rental. Is that a good idea? Or will it damage the economy causing inflation?
Rent will generate income.
Low rent will give poorer more spending money.
This would be government housing,…
user127379
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Why does Fed buying mortgage backed security help lower the interest rate for mortgages?
If Fed buys more mortgage-backed securities, does it necessary mean that the interest rate will go down? Consider the supply and demand market for mortgages and let us assume the supply side is the commercial banks and the demand side is…
Kun
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Why does Quantitative Easing buy Primary Government Bonds instead of other things such as funding the Goverment budget more directly?
From my understanding Quantitative Easing(qe) is used to increase the money supply and stimulate growth. Why are bonds primarily the asset qe buys? Would it not achieve the same thing by just financing the government directly by giving the newly…
Ira Watt
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Interest rates in Quantitative Easing of 2008
When the US govt printed money in 2008 and lend it to the banks, how much the banks had to pay in interest?
Joe Jobs
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Does quantitative easing appreciate or depreciate the domestic currency?
410 gone says the domestic currency depreciates.
You've identified the first-order effect: the supply of local currency has increased, so its price (and from the perspective of other currencies, that's its exchange rate) decreases. That's assuming…
user4020
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Why does lowering stock rate of returns increase stock prices?
(i) I don't understand point 1 beneath. Why does the Federal Reserve's buying assets lower risk premiums?
(ii) I don't understand point 3 beneath. Why does lower stock rate of returns increase stock prices? Won't lower stock rate of returns lower…
user4020
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Do low bond yields make QE ineffective
The next recession is coming up soon and I've been wondering how effective our expansionary monetary policy will be. The interest rate doesn't have a ton of room to be lowered and bond yields are half of what they were before the great recession,…
Jonah
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