quantitative easing

Quantitative easing means putting more money into our economy to boost spending.
the targets of ‘quantitative easing’ ：

- keep the inflation stable and promote a healthy economy.

The bank of England use the interest rate to control inflation , and they aim is keep the interest at 2% but the target made by government . why the government and bank hope to keep the inflation stable ,this is because if the inflation below 2% or nearly zero, it reduce the the bank rate to boost spending and inflation. Also there is a still significant risk of very low interest rate, the bank can increase the quantity of money,so in other words, inject the money directly to the economy, the process of this also called quantitative easing. Because of injection of money the spending may increase because with the increase in lending the money to the seller or buyer they can spend more which is more than before, therefore the spending will increase and the inflation rate may grow up. Whereas why keep stable inflation is good? Because if the inflation is unstable, in terms of householder and companies which is very costly. and they make it hardly to see how price of individual good are changing compared with others.

-supply more money

why should more supplied?

Because the money supply needs to keep growing at the steady rate of the economy,and to ensure inflation remain close to the government 2% targets.