Explain

[ElTruecel]

Explain to me the benefits of quantitative easing oh wait there isn’t!
@Sprinkles @cromagnon @Indracelly @wishIwasSalludon @WhoTookVendetta @JohnDoe @Debetro @noob @Jason Voorhees @IAMNOTANINCEL @greycel ban usury

@Sprinkles I hope you understand what it is since I taught you the evils of central banking boyo. You other guys should help me teach @Sprinkles as well

 

[ElTruecel]

@looksmaxxed

 

[Sprinkles]

idk nigga lemme ask chatgpt

Quantitative easing (QE) is a monetary policy tool used by central banks to stimulate the economy when conventional monetary policies, like lowering interest rates, are insufficient. Here are the main benefits of quantitative easing:


1. Lowering Interest Rates

• How it works: QE involves the central bank purchasing large quantities of government bonds or other financial assets from the market. This increases the demand for these assets, driving up their prices and, inversely, lowering their yields (interest rates).
• Benefit: Lower interest rates make borrowing cheaper for businesses and consumers, which can lead to increased spending and investment. This helps to stimulate economic activity, particularly in times of recession.

2. Increased Money Supply

• How it works: When central banks buy assets, they pay for them by creating money. This newly created money increases the overall money supply in the economy.
• Benefit: An increased money supply can lead to more spending and investment by businesses and consumers, potentially leading to higher economic growth and employment.

3. Support for Asset Prices

• How it works: By purchasing financial assets, QE helps to support or even increase their prices.
• Benefit: Higher asset prices can improve the balance sheets of banks, businesses, and households. For example, rising stock prices can increase household wealth, encouraging more consumer spending (known as the wealth effect).

4. Encouraging Bank Lending

• How it works: By increasing reserves in the banking system, QE can encourage banks to lend more, as they have more funds available and fewer attractive low-risk assets to hold.
• Benefit: Increased lending by banks can lead to more business investments and consumer spending, further stimulating the economy.

5. Avoiding Deflation

• How it works: QE can help prevent deflation, a situation where prices fall across the economy, which can lead to reduced consumer spending and investment.
• Benefit: By stimulating demand, QE can help maintain or increase price levels, avoiding the downward spiral of deflation that can harm the economy.

6. Improving Economic Confidence

• How it works: QE signals that the central bank is committed to supporting the economy and combating deflation or recession.
• Benefit: This can boost confidence among businesses and consumers, leading them to spend and invest more, which can accelerate economic recovery.

7. Currency Depreciation

• How it works: QE can lead to a depreciation of the country’s currency because the increased money supply can make the currency less valuable relative to others.
• Benefit: A weaker currency can make a country’s exports cheaper and more competitive internationally, boosting economic growth.

Conclusion:


Quantitative easing can be a powerful tool for central banks to stimulate the economy, particularly during times of financial crisis or recession. However, it also carries risks, such as potential inflation if used excessively, or the creation of asset bubbles. Hence, it must be carefully managed and often used as part of a broader set of economic policies.

 

[Indracelly]

why do you always get your information from shit conspiracy theorist copers

 

[ElTruecel]

why do you always get your information from shit conspiracy theorist copers

What does quantitative easing have to do with conspiracies it’s an actual thing the fed did during the recession

 

[Indracelly]

What does quantitative easing have to do with conspiracies it’s an actual thing the fed did during the recession

i mean your opposition to it, it's good and would've prevented the great depression

 

[sportsmogger]

Wtf is that nigga

 

[ElTruecel]

i mean your opposition to it, it's good and would've prevented the great depression

Why do u cuck so hard to Jewish neoliberalism

 

[Indracelly]

Why do u cuck so hard to Jewish neoliberalism

the great depression was caused by the collapse of banks, quantitative easing would've kept banks afloat by funding them

 

[ElTruecel]

the great depression was caused by the collapse of banks, quantitative easing would've kept banks afloat by funding them

The collapse of banks happen because the bank kept loaning the money out. So when people came to deposit their money the bank did not have it causing the collapse

 

[ElTruecel]

@wishIwasSalludon

 

[wishIwasSalludon]

@wishIwasSalludon

I don’t even know what this means mang

 

[ElTruecel]

I don’t even know what this means mang

JFL i thought you’d and @cromagnon would know quantitative easing is by now

 

[PLA1092]