A level economics and business studies - Quantitative Easing
Quantitiatve easing - injecting money into the economy
The Monetary Policy Committee announced in March 2009 that it would start to inject money directly into the economy to boost spending – a policy often known as quantitative easing (QE). The Committee continues to set Bank Rate each month, and the objective of monetary policy is unchanged – to meet the government’s 2% inflation target.
The article which can be downloaded from the column on the right featured in the Summer 2010 edition of the magazine. Written by Joe Ganley, a senior economist in the Public Communications and Information Division at the Bank of England, it explains the process of quantitative easing and the context for these measures by the Bank of EnglandIt. It offers good material for more able students and is essential background reading for teachers who need to know the intricacies of monetary policy.
NOTE: This resource features in all three A-level sections, Business Studies, Economics and Economics & Business
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Go to the list of BTEC articles from the archives of EBEA magazine, Teaching Business and Economics
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