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12
Apr
Quantitative Easing QE: Definition, Pros & Cons
After this initial volatility when the prospect was announced, markets stabilised through the rest of the year – before tapering had even come into effect. In November 2008, the Fed purchased $600bn-worth of mortgage-backed securities (MBS) in response to the sub-prime mortgage crisis. This was expanded in March 2009 with an additional $750bn of MBS and $300bn in Treasury security purchases. The policy is effective at lowering interest rates and helps to boost the stock market, but its broader [...]
