Magic money tree – QE & money printing and their part in the coronavirus economic rescue | AMP Capital

So why do quantitative easing? Normally central banks implement monetary policy by changing interest rates. But when interest rates have already fallen to zero, in order to support the economy central banks have been turning to boosting the quantity of money in the economy. Hence quantitative easing. The current expansion in quantitative easing (and its adoption in Australia) reflects: A need to ensure that short term money markets continue to function – as lenders became …