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Showing posts with the label Quantitative Easing

Quantitative Easing & GFLR

            Present time central bank of US & UK going to buy government financial assests ie. Matured bond held by financial  ( pension fund, insurance fund) & banking institutions. Present time due to covid-19 lock down cycle of money is halted so central bank will print new note or issue digital currency to by government new bonds or government liability bonds which are on maturity.              This time economies are suffering from recession, tax collection of governments are decreased so meet the financial requirements for current liability and expenditure central bank is pumping fresh money in the economy so rise of interest rate will stopped and cheap money will be available at market. Thus industrial output would be maintained and unemployment in public will stopped.          This method is good but ultimately we are pushing economy by monetary credit but in future if inflatio...