Bank of England can influence the growth of the money supply

• What is quantitative easing?:

  • quantitative easing when the Bank of England buys assets, usually government bonds, with money that the Bank has created electronically.
• What is quantitative easing?

  quantitative easing when the Bank of England buys assets, usually government bonds, with money that the Bank has created electronically.
• What does quantitative easing encourage:

  • increases the supply of money in the banking system
  • encourage commercial banks to lend at cheaper interest rates to small & medium sized businesses
• What is forward guidance?:

  • Forward guidance is making a promise about a future interest rates