By now we have all heard the Quantitative Easing line bandied about by a number of central banks with the US and the UK embracing it wholeheartedly, but i just happened to find a nice easy piece in the UK telegraph that explains the nuts and bolts of the process that is worthwhile having a read if you are not completely at ease with what it all means.
Quantitative easing is the modern way to print money. The central bank doesn’t actually have to use a four-colour press to spew out crisp notes. There are more sophisticated ways to boost a nation’s money supply. But ultimately the impact is not very different from dropping dollar bills from a helicopter as Ben Bernanke once described this policy before he became the Federal Reserve’s chairman
My apologies, this post would have made a lot more sense had i included this link.
