Discuss Quantitative Easing and Credit Easing in Relation to the Liquidity

question 28

Essay

Discuss quantitative easing and credit easing in relation to the liquidity trap. How effective are these unconventional monetary policy measures?

---

Definitions:

Separate Legal Entity

A business entity that is legally distinct from its owners, meaning it can own property, incur debts, and be sued in its own name.

Ratification

The action of formally confirming or approving an agreement, treaty, or contract, making it officially valid.

Authority

The legal right or power to make decisions, enforce rules, or command obedience.

Principal

In a legal context, a principal can also refer to the person who has authorized another (an agent) to act on their behalf.