Quantitative Easing Essay
Research proposal -
“A critical review of Quantitative easing and its impact on the UK’s economy”
Research background (Theory, concepts, Key issues, problems and researchable questions) -
Theory- During the recession flow of the money in the market is very less, hence central bank lend the money to the borrowers at low interest rates, but there is limitation they cannot go beyond zero percentage, hence central bank do “Quantitative Easing” that is printing of money and boost the money into market by purchasing the assets and buying the gilts or government debts.
Concepts- the main concept behind the Quantitative easing is to boost the money into the market …show more content…
Article of Jeremy Warner “Worried about the lack of growth not more quantitative easing.” In telegraph news paper published on 02 Nov 2009. In his research he has explain the issue on “Is Quantitative easing helping to stoke a renewed and dangerous bubble in asset prices? This is just one of the questions the Bank of England must attempt to answer in coming days.”(Jeremy Warner, 2009). Author has given the answer ‘yes’. QE is all about the stoking of assets price, for growth and development bubbles in assets are not advisable but it is not dangerous until escorted by the leverage, use of the debts. “To bears, QE