Introduction. What will monetary policy affect? Expansionary monetary policy. Expansionary monetary policy. Contractionary monetary policy. Contractionary monetary policy. EVA. How does monetary policy work? Money Market diagram. 3 tools the MPC use. Monetary policy transmission mechanism (diagram) Monetary policy - transmission mechanism #1. Monetary policy - transmission mechanism #2.
What is quantitative easing? Image copyright Getty Images The European Central Bank has outlined further action aimed at stimulating the eurozone economy.
One way it is trying to do so is by boosting the amount of overall money in the banking system through something known as quantitative easing, or QE. While the United States has wound down its programme of QE now that the economy is growing more steadily, the eurozone only began its version in January 2015, pledging to put an extra €60bn ($63bn) into the system each month. QE introduction + information on the 09 recession. Steps of Quantitative Easing.