Quantitative easing may not be effective because the central bank has no specific advantage over the private sector in

Question

Quizplus · Accepted Answer

Quantitative easing involves the central bank purchasing long-term securities to lower interest rates and increase money supply. The central bank does not have a specific advantage over the private sector in swapping short-term debt for long-term debt, as this is a market operation that both can perform.

Quantitative Easing May Not Be Effective Because the Central Bank