How Do Central Banks Work and What is Quantitative Easing?

Quantitative easing is once again under the spotlight thanks to the Coronavirus pandemic. This video is inspired by all the reddit users who reply to questions on monetary policy with all the confidence in the world and proceed to get at least half the details wrong cough r/Economics *cough*… In it, I cover the 3 main tools Central Banks use to control inflation in the economy and let me say it again: ALL OTHER OBJECTIVES ARE SECONDARY! The main goal of a Central Bank as the custodian of the economy’s money is to achieve low and stable inflation! Forward guidance (the quiet kid in the group who picks up everybody else’s slack and gets no credit), interest rates (the kid who used to be really smart but kinda lost his touch recently) and quantitative easing (the kid everyone praises/hates on who hasn’t really done much in years). Make sure to like, subscribe and hit the bell to support the channel and stay updated on uploads! Timestamps: 0:00 - Intro 0:10 – Central Banks Introduction 1:41 – Forward Guidance and Expectations 5:55 – Short Term Interest Rates 8:52 – Long Term Interest Rates 10:55 – Quantitative Easing Sources Studies and Research: http://www.centreformacroeconomics.ac... - this version is missing graphs and visual aides that I used in my video for some reason so I have captioned every graphic I use in the video from this study. But it is an incredibly insightful read if you have the macro foundations to understand it. https://papers.ssrn.com/sol3/papers.c... https://www.ecb.europa.eu/pub/pdf/scp... https://www.ecb.europa.eu/pub/confere... Data: https://tradingeconomics.com https://www.ecb.europa.eu/stats/polic... https://www.federalreserve.gov/releas... https://www.bankofengland.co.uk/monet... https://www.snb.ch/en/iabout/stat/sta... https://www.stlouisfed.org/annual-rep... https://www.bankofengland.co.uk/monet... Articles and Concepts: https://www.independent.co.uk/news/wo... https://www.investopedia.com/articles... https://www.investopedia.com/articles...