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After the last financial crisis (2007-2009) many Central Banks started a new program dubbed Quantitative Easing (QE). The premise of the program is to buy
After the last financial crisis (2007-2009) many Central Banks started a new program dubbed Quantitative Easing (QE). The premise of the program is to buy Bonds from banks in order to increase market liquidity. (a) Briefly explain the effect of this policy on Capital Markets (Bonds and Equity) (b) Based on the information in the previous question, do you think QE was a success or failure? Explain.
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