The bank of england has switched from interest rate cuts to, Ask an Expert

Economics

The Bank of England has switched from interest rate cuts to "quantative easing" This policy involves buying bonds from commerical banks in the hope that these institutions will again lend in vast quantities to businessess and individuals after sitting tight sinc the credit crisis erupted in 2007.

A) What terminology would most economists use to describe "quantitative easing"?

B) How is this supposed to include banks to begin lending?

C) Why would commerical banks be sitting tight since the 2007 crisis?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9676778

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