Money & WorkFact

What central banks do when the interest rate is already zero.

In quantitative easing the central bank buys government and corporate bonds from banks on a large scale and credits them with central bank money in return. This pushes long-term rates down, makes credit cheaper and aims to spur investment. The ECB did this from 2015 on a trillion-euro scale. Critics see it as a driver of property and stock prices.

Useful: Rising asset prices alongside stagnating wages are a typical side effect of this policy.

Source: de.wikipedia.org

EzbGeldZentralbank

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