From The Heritage Foundation:
Monetary Policy/Financial Regulation
The Federal Reserve’s Quantitative Easing: Questions and Answers
by Robert McTeer
National Center for Policy Analysis
November 19, 2010
Brief Analysis
Recently, the Federal Reserve announced plans to resume monetary easing by purchasing $600 billion in U.S. Treasury bonds by June 2011. Bonds purchases give the sellers additional funds in their banks, which adds to banks’ reserves and lending ability. The Fed’s goal is to expand money and credit and thereby stimulate the economy. Why is it called quantitative easing?
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