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4.2.4.3 Quantitative Easing (AQA A-Level Economics Teaching PowerPoint)

Level:
A-Level
Board:
AQA

Last updated 31 Oct 2023

This AQA teaching powerpoint covers Quantitative Easing

Quantitative easing, or QE, is an unconventional monetary policy tool that central banks have used in recent years. It involves the central bank buying large amounts of financial assets like government bonds in an effort to increase the money supply and encourage spending. QE is typically used during times of economic downturn or crisis when other monetary policy tools have been exhausted. For example, after the financial crisis of 2008, many central banks turned to QE to stimulate economic growth. While QE can have positive effects on the economy, it also carries risks, like higher inflation and financial instability.

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