- Government gives central banks a mandate to create more electronic money - with that money they buy bonds back from highstreet banks - so highstreet banks are able to lend more Asset swapping ALSO Because BoE is buying bonds, demand for bonds increases, positive wealth effect

monetary policy Flashcards by Eleftheria Sermpeti

quantitative easing

Government gives central banks a mandate to create more electronic money
with that money they buy bonds back from highstreet banks
so highstreet banks are able to lend more
Asset swapping
ALSO
Because BoE is buying bonds, demand for bonds increases, positive wealth effect

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monetary policy Flashcards

(1 cards)