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QE Video Part 2

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Part 1 of 6: Quantitative Easing Explained - How Does It Work:

There are many misconceptions about quantitative easing and the Federal Reserve’s QE program. This video explains in detail how quantitative easing works in the real world. QE is about broker-dealers, financial markets, asset prices, inflation, and balance sheets. Quantitative easing has very little to do with traditional banks and bank reserves, nor is lowering interest rates the primary objective. This video provides a definition of QE, while showing the flow of the Fed’s newly printed money to the primary dealers and their customers. The printed money enters the real economy immediately, either by way of the account of the broker dealer, or the account of the broker dealer’s customer.

Below is part 1 of the 6 part series, this link will take you to QE Video Part 2.

Quantitative Easing: How Does It Work - QE Explained

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