Quantitative Easing Explained
How QE Supports Asset Prices
A reader has asked us to explain how central banks support asset prices through its balance sheet expansion or what is known as asset purchases or “QE.”
[FED PRINTS MONEY - US TREASURY ISSUES DEBT - FED USES MONEY TO BUY SECURITIES (GIVES CASH TO RECEIVER) RECEIVER USES CASH TO BUY ASSETS OR USES LEVERAGE TO FACTOR INVEST]
OK, lets break this down further:
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