It has not been fully disclosed to the public, but QE is happening. With the interest rate hike policy of the Japanese stock market, investors who traded with leverage caused the market to fall deeper and started selling the papers they had and turned their existing money into bonds and bills to minimize the loss.
Now the same scenario and groundwork is ready to be implemented by central banks, with the Treasury adding approximately $30 billion each month through bond repurchase operations.
Global Liquidity Is Quietly Increasing.
#Bitcoin is a response to these.
What is QE? About Its Causes and Effects👇
In economics, QE (Quantitative Easing), also known as “Monetary Expansion” in Turkish, is a monetary policy tool used by central banks to stimulate economic growth and prevent deflation.
QE involves central banks injecting money into the market by purchasing a certain amount of government bonds or other securities. The aim of this process is to increase the balance sheets of banks and other financial institutions, encourage them to lend, and stimulate economic activity by lowering interest rates.
QE is typically used when traditional monetary policy tools (for example, lowering interest rates) are not sufficient. The main effects of QE are:
1. Lowering Interest Rates: Central banks buy large amounts of securities, which increases their prices and lowers their yields. This also lowers general interest rates.
2. Increased Credit and Spending: Lower interest rates make consumer and business loans more attractive, which can increase consumption and investment spending.
3. Rising Asset Prices: Money injected into the market can increase the prices of assets such as stocks and real estate.
4. Currency Depreciation: QE can devalue the national currency, which can stimulate exports.