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Printing Money with Quantitative Easing: Where is the Inflationary Risk?
- Source :
- International Review of Applied Financial Issues & Economics; Sep2010, Vol. 2 Issue 3, p405-415, 11p, 2 Charts
- Publication Year :
- 2010
-
Abstract
- Quantitative Easing consists of asset purchases by the central bank from both banks and non-banks with the help of reserve creation. While the operation could have a potential danger of inflationary pressure due to the money multiplier (banks create broad money from the reserves), the leverage is reduced due to the capital constraints of the banking sector. In this paper we explain how these capital constraints can be effective, hence curbing the inflationary impact of the Quantitative Easing measures. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- Volume :
- 2
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- International Review of Applied Financial Issues & Economics
- Publication Type :
- Academic Journal
- Accession number :
- 57489834