Preview: Quantitative Easing is not free money for the banks

It seems everyone has heard of quantitative easing, (QE), but hardly anyone knows what it is. People think QE, as used in the US and UK since the financial crisis, and still in use in the EU and Japan, is free money for the banks and will lead to rampant inflation. It really isn’t and it really doesn’t.

In reality, QE is merely an asset swap where investors receive bank deposits in return for government securities.

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