How Quantitative Easing Differs from Money Printing | QE Explained скачать в хорошем качестве

How Quantitative Easing Differs from Money Printing | QE Explained

No! Quantitative Easing (QE) is not the same as money printing. This video explains exactly what the meaning of quantitative easing is and what the differences are with money printing. WANT TO HELP ME PRODUCE MORE CONTENT LIKE THIS? △ Consider supporting me on:   / moneymacro   △ Or for one-time donations: https://www.paypal.com/donate?hosted_... 5 BOOKS THAT INSPIRED THIS CHANNEL The Narrow Corridor: States, Societies, and the Fate of Liberty: https://amzn.to/3gr6pSV Money Changes Everything: How Finance Made Civilization Possible: https://amzn.to/3mt3xbY Adaptive Markets: Financial Evolution at the Speed of Thought: https://amzn.to/3sCkS3a House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again: https://amzn.to/3gqXNeZ The Third Pillar: How Markets and the State Leave the Community Behind: https://amzn.to/382Agwo △ Want to know more about central banking? Check out the playlist:    • Central Banking   △ Check out how I use these principles to study country economies:    • Country Economics   Want to know more? Watch the video, or read it all in the script here: https://www.moneymacro.rocks/2021-01-... Narrated and produced by Dr. Joeri Schasfoort (University of Cape Town)   / joerischasfoort     / joeri-schasfoort   Timestamps: 0:00​ - introduction 1:01​ - what QE is 1:48 - the two main differences 3:48 - why central bankers use QE Extended description: In 2021, we can safely say that QE has become a staple in the monetary policy toolkit of central banks such as the United States Federal Reserve (fed), European Central Bank (ECB), Bank of England, and the Bank of Japan. This policy is also known as large scale asset purchases (and monetary easing). This makes sense because this is basically what happens. However, since the central bank is doing it, new bank reserves are created to buy these bonds. The central bank thus expands it balance sheet and, since reserves are money, it increases the money supply. However, with money printing, the central bank creates notes & coins, not reserves. This is important because reserves can only be used by banks. Also, the central bank takes government (and sometimes corporate) bonds out of circulation with QE. Since bonds are also used by financial institutions to pay each other (in repo markets), it could be that effectively the money supply doesn't change much.