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QE: A User’s Guide

Joseph E. Gagnon, Joseph E. Gagnon, (2018), “QE: A User’s Guide”, Policy Brief, PIIE, October

In recent years several major central banks have conducted large-scale purchases of long-term bonds and other financial assets to stimulate economic growth, boost employment, and raise inflation towards its targeted level. These policies have come to be known as quantitative easing (QE). Central banks turned to QE when they believed that further reductions in their conventional short-term policy interest rates were either not possible or not helpful. With interest rates expected to remain at historically low levels around the world, it is likely that central banks will have to turn to QE again the next time a recession strikes.

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