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econoMAX - How does Quantitative Easing affect the Exchange Rate

Jim Riley

7th November 2013

Although A level specifications have not changed for some years the introduction of quantitative easing (QE) programmes by central banks such as the Bank of England and the Federal Reserve in the US has meant that A level students have had to become familiar with it as an instrument of monetary policy. With short term interest rates almost at zero and banks still very risk averse, the monetary authorities have in recent years embarked on QE in an attempt to inject liquidity into the financial system to boost lending in recession hit economies.

econoMAX - How does quantitative easing affect the exchange rate? from tutor2u


This article was recently published in econoMAX, tutor2u's digital magazine for A Level Economics. Schools and Colleges subscribing to econoMAX are able to access the entire archive of hundreds of similar articles and can download, save, print and share hi-res PDFs of each resource.

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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