Friday, March 20, 2009

Differences of Quantitative Easing between US and ECB

--quantitative easing is unconventioanl monetary policy when traditional monetary policy is no longer powerful --US policy is pormoting a policy between quantitative easing, lending money to buy Treasury to lower intereset rates, and credit easing, lending money to buy private debt assets --Eurozone is more relying on bank credit not capital market. --Eurozone lack the central Treasury to issue money and fill up the loss, no clear guidance which sectors or companies they should focus

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