The US and UK governments has poured unprecedented amounts of money into the economy in an attempt to get it moving. It’s done so through quantitative easing,
which involves buying back its own bonds using money that doesn’t actually exist. ????
It’s like borrowing money from somebody and then paying them back with a piece of paper on which you’ve written the word ‘Money’ – and then, magically, it turns out that the piece of paper with ‘Money’ on it is real money. (Note: don’t try this.)
Another way of describing quantitative easing would be that it is as if, when you look up your bank balance online, you had the additional ability to add to it just by typing numbers on your keyboard. Ordinary punters can’t do this, obviously, but governments can; then they use this newly created magic money to buy back their own debt. That’s what quantitative easing is.
Got that? Better if you did, because the thing is if it QE quantitive easing doesn't work ti could turn to be a real thereat to our polity (organised society).
which involves buying back its own bonds using money that doesn’t actually exist. ????
It’s like borrowing money from somebody and then paying them back with a piece of paper on which you’ve written the word ‘Money’ – and then, magically, it turns out that the piece of paper with ‘Money’ on it is real money. (Note: don’t try this.)
Another way of describing quantitative easing would be that it is as if, when you look up your bank balance online, you had the additional ability to add to it just by typing numbers on your keyboard. Ordinary punters can’t do this, obviously, but governments can; then they use this newly created magic money to buy back their own debt. That’s what quantitative easing is.
Got that? Better if you did, because the thing is if it QE quantitive easing doesn't work ti could turn to be a real thereat to our polity (organised society).
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