Purchase Solution

Federal Reserve's Quantitative Easing Program

Not what you're looking for?

Ask Custom Question

Please help with the following problem:

The federal reserve has announced an end to their controversial quantitative easing bond purchase program. How will the economy react to this decision?

Purchase this Solution
Solution Summary

This solution provides a discussion about the Federal Reserve's quantitative easing program. It discusses why quantitative easy was a referred solution by the Federal Reserve, why this monetary tool has been considered controversial, and the the Federal Reserve's recent announcement to end the qualitative easing bond purchase program. The explanation is 254 words in total and includes one reference.

Solution Preview

Question: The federal reserve has announced an end to their controversial quantitative easing bond purchase program. How will the economy react to this decision?

First, quantitative easing was one of the preferred solutions by the Federal Reserve in managing the U.S. economy particularly in trying to jumpstart its recovery from the 2007 economic crisis. Quantitative easing increases the Fed's balance sheet as a result of the direct purchase of the private sector's ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • The U.S. Economy: Financial Crisis & The Global Economy

    Let us discuss about the usage of Federal reserve's monetary policy to handle recession.

  • Economic Tapering

    Quantitative easing means increasing the liquidity of the market through steps taken by the Federal Reserve. QE3 means the third round of quantitative easing that was sanctioned in September 2012.

  • Federal government targeting money stock

    The third round of quantitative easing called the QE3 was launched on September 13, 2012. The Federal Reserve decided to launch a new $40 billion a month open ended bond purchasing program of agency mortgage backed securities.

  • Quantitative Easing US UK

    570167 Quantitative Easing US UK Has Quantitative Easing (QE) proven to be an appropriate and effective response to the Great Recession in the United Kingdom and the United States?

  • Quantitative Easing

    488616 Quantitative Easing Do you think the Federal Reserve should continue quantitative easing to stimulate the economy? Why can't countries like Greece or Spain use quantitative easing as a means to stimulate their economies?

  • quantitative easing

    362124 The theory behind quantitative easing please see the details. On the 3rd of November the Federal Reserve Bank in the US announced its second round of quantitative easing (QE).

  • Federal Reserve

    Federal Reserve has recently used the tools of very low interest rates and quantitative easing to stop the US economy to go into a depression.

  • Quantitative Easing

    360057 Quantitative Easing What is "Quantitative Easing"? Discuss the latest "QE2" measure Federal Reserve bank chairman Ben Bernanke is taking. What is his stated purpose? Why is it so controversial?

  • Press Conference Speech of Chairman Ben Bernanke

    The key highlights of the Federal Open Market Committee statement were that indirect quantitative easing (treasuries and MBS reinvestment) will continue, direct quantitative easing will continue and are projected to be $600 billion by June of this year

View More Related Solutions