Quantitative easing

Discussion in 'SP5' started by r_v.s, Jun 30, 2014.

  1. r_v.s

    r_v.s Member

    Does QE mean printing more money or large scale OMOs?
     
  2. manish.rex

    manish.rex Member

    QE simply means injecting money in the economy , so that liquidity is available at lowest possible cost (at least in intention, though not always a consequence of QE).

    It can be achieved through both by printing more money, to permanently increase the volume of money in circulation, and through OMO, which may include buying back govvernment bonds.
     

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