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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:

Thorstein Veblen

An American economist and sociologist known for his theories on the socio-economic impacts of conspicuous consumption and leisure.

Consumption

The process by which goods and services are utilized by consumers, leading to a decrease in their quantity or quality, reflecting the end phase of economic activity.

Disposable Income

Post-income tax financial reserves set aside for households to utilize in spending and saving.

Credit Availability

The simplicity of securing loans and different types of credit for individuals and companies from finance companies.

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