Alternative Monetary Policy Tools: Understanding Quantitative Easing

The video explains quantitative easing (QE) as an alternative monetary policy tool used when interest rates are low. It details how the Bank of England creates money to buy financial assets, increasing the money supply without giving money away. The video covers the effects of QE on banks, trade, and consumer confidence, and explains the inverse relationship between asset prices and yields. It concludes with a discussion on QE's impact on government debt and future monetary policy developments.

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