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Quantitative Easing

What is quantitative easing?

Quantitative easing is the process of increasing the amount of money in circulation in an attempt to revive the economy.

What is the purpose of quantitative easing?

The idea of quantitative easing is that if the amount of money in the system is boosted, commercial banks will find it easier to lend. Instead of simply printing money, the bank will buy assets such as government securities (gilts) and corporate bonds.

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