QUANTITATIVE EASING.

The article examines the near-zero interest rate policy (ZIRP), quantitative easing (QE) undertaken by central banks and the impacts and risks of QE. Topics discussed include implementation of quantitative easing program by central banks, beneficial effects of quantitative easing on the economy and role of quantitative easing to reduce adverse effects of deflation. Other topics include purchasing of government bonds by commercial banks and introduction of ZIRP by the Bank of Japan.