[ rss / options / help ]
post ]
[ b / iq / g / zoo ] [ e / news / lab ] [ v / nom / pol / eco / emo / 101 / shed ]
[ art / A / beat / boo / com / fat / job / lit / map / mph / poof / £$€¥ / spo / uhu / uni / x / y ] [ * | sfw | o ]
logo
economics

Return ]

Posting mode: Reply
Reply ]
Subject   (reply to 5754)
Message
File  []
close
HM_Treasury_logo.svg.png
575457545754
>> No. 5754 Anonymous
18th September 2015
Friday 8:59 pm
5754 Quantitative Easing
As far as I understand it Quantitative Easing is in essence HM Treasury buying both government gilts and private sector assets, as below:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/461457/Report_under_section_231_of_the_Banking_Reform_Act_2009_September_2015.pdf

>Asset Purchase Facility

>At 31 March 2015 the authorised limit of asset purchases was £385 billion, comprising £375 billion financed from central bank reserves and a
further £10 billion for the purchase of private sector assets, financed by the
issuance of central bank reserves, Treasury bills and the Debt Management Office’s
cash management operations.

Who decides what private sector assets are being bought? Is it just a selection of shares from the FTSE100, is it company bonds or assets such as real estate?

Does anyone know?
Expand all images.
>> No. 5761 Anonymous
18th September 2015
Friday 10:21 pm
5761 spacer
>>5754
QE is the BoE artifically generating money in order to buy government bonds, as opposed to the private sector buying them. This artificially increases demand for govt bonds and thus pushes down the interest rate on those bonds.

I believe private sector asset purchases are decided by the MPC. You can find details here:

http://www.bankofengland.co.uk/publications/Pages/other/markets/apf/quarterlyreport.aspx

Return ]
whiteline

Delete Post []
Password