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: [ Ссылка ]
△ Or for one-time donations: [ Ссылка ]
5 BOOKS THAT INSPIRED THIS CHANNEL
The Narrow Corridor: States, Societies, and the Fate of Liberty: [ Ссылка ]
Money Changes Everything: How Finance Made Civilization Possible: [ Ссылка ]
Adaptive Markets: Financial Evolution at the Speed of Thought: [ Ссылка ]
House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again: [ Ссылка ]
The Third Pillar: How Markets and the State Leave the Community Behind: [ Ссылка ]
△ Want to know more about central banking? Check out the playlist: [ Ссылка ]
△ Check out how I use these principles to study country economies: [ Ссылка ]
Want to know more? Watch the video, or read it all in the script here: [ Ссылка ]
Narrated and produced by Dr. Joeri Schasfoort (University of Cape Town)
[ Ссылка ]
[ Ссылка ]
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.
Ещё видео!