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Hi,
The above is one of the tips for December exam. Could you please explain briefly what quantitative easing is? I´m not sure which area of study does it refer to.
Many thanks!Quantitative easing is when the government puts more money into the economy.
They do it in the hope that with more money around it will increase lending and therefore stimulate the economy (which is why the US and other countries have been doing it recently).
The risk is that it will increase inflation.
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Hi John,
Are there any sample quations on quantitative easing as it is not part of the syllabus, or would a question be just for say 5 marks as it has been a relevant news topic over the last year or so?
It is effectively in the syllabus under heading F (1(d)) – the role of the central banks (and to a certain extent F (1) also).
One of the choice questions is always 100% written, and although it is obviously only a guess it just could be a major part of this question (because it is so topical). There can be no calculations involved.
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Ok thanks.
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