Friday, March 6, 2009

Bank of England pump 75 billion pound sterling to kick start economy

"Quantitative easing" - QE is the creation of new money out of 'thin air' by a central bank, and its injection into the banking system. The aim is to increase the amount of deposits in private banks so that, by way of deposit multiplication, they can increase the money supply by increasing debt (lending).

Literally QE meaning, printing money to flood the MAIN street / WALL Street market with suffecient cash to wheel or kick start lending( by banks) and spending ( by consumers) in various sectors and industry be it auto , housing , retail etc.

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