How will quantitative easing (QE) actually help to drive further growth?
Question by Immortal: How will quantitative easing (QE) actually help to drive further growth?
Now that China is increasing its interest rate (probably more will come if inflation continue rising). Asian economic growth may be slowed. How will the QE next month helps to put growth back on track for everyone?
Best answer:
Answer by Anjaree
It depends how the new money will be used. If it is going south to speculate from the stock market and exchange rate appreciation, it won’t help the growth of the US economy. But if the new money is spent and invested here, it will help to reduce the unemployment. Some infrastructure projects are debating like bullet train and alternative energy.
Know better? Leave your own answer in the comments!
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