Will Quantitative Tightening Lead To Even Greater Financial Losses?
Money For the Rest of Us
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Bank Borrowing and Quantitative Easing
When we borrow from the bank, new money is created. The amount that households and businesses are willing to borrow depends on the level of interest rates. In the last 20 years or so, central banks have been using a new tool to influence the punch bull. It's called quantitative easing. This started with japan in two thousand one. In the us and the uk, quantitative easing program started in two thousand nine. And in the european union, it was in 20 15. Less money creation leads to lower demand and hopefully a better match between the output produced and the output consumed, and lower inflation.
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