Alternative Monetary Policy Tools: Understanding Quantitative Easing

The video explains quantitative easing (QE) as an alternative monetary policy tool used when interest rates are low. It details how the Bank of England creates money to buy financial assets, increasing the money supply without giving money away. The video covers the effects of QE on banks, trade, and consumer confidence, and explains the inverse relationship between asset prices and yields. It concludes with a discussion on QE's impact on government debt and future monetary policy developments.

How does QE impact bank liquidity ratios?

Discuss the potential long-term implications of the Bank of England holding government debt.

What is the relationship between market value and yield of financial assets as explained in the text?

What are the differing views on the impact of QE among classical and Keynesian economists?