[uNkNowN ElEmEnt]

$this->bbcode_second_pass_quote('', '"')Once the price of money gets close to zero, what the Federal Reserve and other central banks can do is they embark on what's called quantitative easing, which is the provision of unlimited amounts of liquidity to the system to ensure the smooth operation of the economy," said Patricia Croft, chief economist at RBC Global Asset Management.

Federal Reserve Board chair Ben Bernanke said this week further cuts in the overnight rate are "certainly feasible," but hinted the central bank could use unorthodox methods to rev up the economy.

One option is to try to influence longer-term interest rates, a possibility Bernanke has raised.

[Tyler_JC]

$this->bbcode_second_pass_quote('', 'W')ell, if it isn't passed on to businesses and the consumer what the hell is the point? it wouldn't stimulate the economy if they don't...and isn't that the whole point in decreasing or dropping rates?

[Ayame]

Yes it was confimed in the Daily Mail in a section for financial dummies.


quantitative easing = printing money


It will begin once interest rates hit zero.


Then hello hyperinflation.

[ReverseEngineer]

$this->bbcode_second_pass_quote('', 'U')nder normal circumstances, such massive injections of liquidity would carry the risk of inflation. But inflation isn't a fear right now because banks are holding on to their money, Croft said.