The Use of QE following the 2008 Financial Crisis

The Use of QE following the 2008 Financial Crisis

Although QE seemed like a completely new direction from central banks when it was launched in 2009, neither the idea of central banks buying bonds on the open market, nor the concept of QE itself were new. In this video, Trevor explains the history of QE, how it works in theory and how it works in practice.
Overview

QE was launched in 2009 by the BOE and the Federal Reserve to combat the effects of the global Financial Crisis. It involved the creation and exchange of central bank reserves for bonds in the hope of increasing money supply in the private sector and lowering credit costs.

Key learning objectives:

  • Define QE, identify the ways it works and its execution methods

  • Discuss QEs various impacts on the economy

  • Be able to give examples of QE in use

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Summary
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Expert
Trevor Pugh

Trevor Pugh

Trevor has worked in finance since 1995. He started his career in investment banking after studying Law at Cambridge and taking a Masters Degree in Financial Services from University College Dublin. Trevor spent 18 years at Barclays investment bank where he became a Managing Director and head of Gilt trading. He currently works as Chief Operating Officer for a hedge fund.

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