Quantitative easing (QE) is a monetary policy where a central bank injects liquidity into money markets by purchasing assets without the goal of lowering the policy interest rate. It’s a tool used to stimulate economic activity during periods of low inflation or recession. Key Characteristics / Core Concepts Asset Purchases: Central banks buy government bonds … Read more
Monetary policy refers to actions undertaken by a central bank to manipulate the money supply and credit conditions to stimulate or restrain economic activity. It’s a key tool used to influence inflation, employment, and overall economic growth. Key Characteristics / Core Concepts Interest Rates: The central bank influences borrowing costs by adjusting interest rates (e.g., … Read more
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole. It focuses on broad aggregates and their interactions within the entire economic system. Key Characteristics / Core Concepts Aggregate Demand and Supply: The overall demand and supply of goods and services in an economy. Economic Growth: The … Read more