POLI 445 Lecture Notes - Lecture 23: Quantitative Easing, Money Supply, Eurozone
2 Jan 2020
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Document Summary
It translated out in other countries with their main financial institutiosn and people flee to usd; but it does not last, but at the beginning people believed in. Interest rates not high in u. s. a and gets pushed down. After a time; low interest rate does not change economic variables. Most secure debt inside the u. s is u. s treasury bonds or notes: treasury going to banks and giving them cash for treasury bonds they hold. The idea is that if you take debts instruments out of banks hand and turn into cash; bank get into position that they have to lend. It is all about debt instruments into cash to encourage and stimulate the economy. Each of these expansions expanded the domestic money supply. Europeans do not used this; and suffered from unemployment. But others responded to crisis differently: values of two currencies changes; euro vs dollar.
