Quantitative Easing (QE) I A Level and IB Economics
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- เผยแพร่เมื่อ 7 ส.ค. 2024
- This sort revision video looks at how quantitative easing works in the UK and considers some of the arguments for and against QE as a form of unconventional monetary policy.
#aqaeconomics #ibeconomics #edexceleconomics
Great video, only thing I cannot get my head around is why an increase in bond prices/decrease in bond yields results in a fall in long run interest rates?
It filters through the commercial banks who pay less to the Bank of England so they pass on to consumers
I cannot imagine my life without this yt channel, thanks alot!!
Glad you enjoy it! Every best wish Alina.
Great explanation of what is a tricky topic
how exactly does the bond market change overall interest of banks? like how are they correlated?
2:56 Hello, question on how exactly mortgages becoming cheaper because of government bond yields going down? Bonds are government or company (if corporate bonds) IOUs where they have to provide stream of cashflow to the bondholder/investor. Mortgages are people paying for their housing debt to the lender (bank). As they work differently I don’t see how they directly compete with each other?
Or is it asset backed securities of bundled mortgages people invest in that you are referring to?
Thank you for the great video! Only one question, you mentioned that the central bank buy government bonds from financial institutions, however my AQA textbook states that 'That said if banks are concerned about their financial health, they may refer to hold the extra reserves without expanding lending. For this reason, the Bank of England is buying most of the assets from the wider economy rather than the banks'. This section is in the AQA book but taken from the Bank of England website. Which one is correct? Does the Central Bank buy from financial institutions i.e banks or from private sector organisations? Thanks in advance!
oh the revision video 2 days before an exam woo hooo
What's the difference between create money electronically by adding it in the balance sheet or print it?
I think creating money electronically IS adding it to the balance sheet.
Very Good!...
Thank you! Cheers!
What are government bonds exactly?
Tech Time - Free Technology Magazine Blog Government bonds is just pretty much lending money to the government and in return you get intrest for it.
When you say the central bank buys government bonds.....is this the government buying their own bonds back that they previously issues to banks?
Does it say anywhere how it's been a failure?
QE has not finished so it cannot be examined as success or failure just yet
why can't the government just print more money?
Inflation
Germany 1923…