Monetary Policy: QE

Quantitative easing (QE) is a policy whereby the central bank expands its balance sheet by buying bonds from the market using newly created central bank reserves. Follow this pathway to gain a clear understanding of its use and impacts, whilst simultaneously tackling the myths that surround it.

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9 videos • 1 hour 45 minutes

  • Is Quantitative Easing Still Necessary?

    Spend some time with Trevor as he talks through his thoughts on central bank monetary policy and the potential consequences of the reversal of quantitative easing.

    Trevor Williams11:25

  • Global Financial Crisis as a Precursor to QE

    The bursting of the US housing bubble and the subsequent collapse of the sub-prime mortgage market triggered a series of events that led to what we now call the global financial crisis. Trevor discusses the monetary policy response to that crisis, in particular quantitative easing.

    Trevor Pugh06:38

  • The Use of QE following the 2008 Financial Crisis

    Although QE seemed like a completely new direction from central banks when it was launched in 2009, neither the idea of central banks buying bonds on the open market, nor the concept of QE itself were new. In this video, Trevor explains the history of QE, how it works in theory and how it works in practice.

    Trevor Pugh21:05

  • Macroeconomic Implications of QE

    There were many estimates made as to the potential size of QE before the Bank of England became the first central bank, post crisis, to buy government bonds. In this video, Trevor discloses the actual impact of QE versus expectations.

    Trevor Pugh06:25

  • Implications of Unwinding QE

    It did not take long after the introduction of QE for market commentators to become overly concerned about a future problem with the policy: what happens when the central banks unwind QE? In this video, Trevor discusses the issues associated with unwinding the policy, the stages of QE and the timing of the unwind.

    Trevor Pugh12:37

  • What is the Normal Rate of Interest?

    Kent discusses the history and future of monetary policy and outlines some potential consequences if policy makers were to rush the unwinding of quantitative easing.

    Kent Matthews13:04

  • QE and the Money Multiplier Myth

    In this video, Frances rectifies the myths related to Quantitative Easing, including who creates money, the money multiplier effect, the decreasing effects of interest rates, and increasing pressure on inflation.

    Frances Coppola10:20

  • QE and the Inflation and Exchange Rate Myths

    In Frances's second video on the mythology of Quantitative Easing (QE), she debunks common misunderstandings regarding inflation, exchange rates, and liquidity before explaining what QE actually is.

    Frances Coppola09:01

  • Impact on Unwinding QE on the Emerging Markets

    Sharmila walks through the impact of the financial crisis on emerging markets and how unwinding quantitative easing could disrupt economic growth in the EM6 nations.

    Sharmila Whelan15:00

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