The financial crisis seems to have a bizarre language all of its own.
Terms such as credit default swaps, sub-prime mortgages or collatoralized debt obligations can be baffling – luckily The Crisis of Credit visualized is an 11 minute video that tries to explain some of these terms and why they have become quite so important
One term that isn’t covered in that video is quantitative easing – the latest move from the Bank of England to try and get the economy moving again – Faisal Islam of Channel4 News explains in this clip.
What will this mean for the economy?
It’s difficult to be sure in this highly volatile economic climate – some further reading on the issue is below:
- Willem Buiter of the FT’s Maverecon blog helps define some terms
- Alistair Milne of the CASS Business School suggests how to conduct a quantitative easing
- Ben Bernanke explores policy responses to the crisis, including quantitative easing
- Kenneth Kutner of the Centre for Finance and Credit Markets says it has risks
- Maximilian Hall of Loughborough argues that Bank will need an exit strategy if it fails
Try EconPapers for more research on quantitative easing from academics.