Changes

This policy of creating additional money to give to banks so that they lend more is highly questionable. The banks were largely responsible for the [[Great Recession]] and the increased money for banks have failed to produce the desired effect even after the Central Bank's $1.7 trillion purchase. The short term economic gains are minimal and in the long term, the central bank will lose money if the market value of the bonds drop before the bank can sell them.  If a quantitative easing policy is in place too long, it can eventually lead to higher prices and inflation or even hyper-inflation.<ref>[http://blogs.forbes.com/charleskadlec/2011/02/22/higher-inflation-is-on-the-way/ Higher [[Inflation]] Is On The Way, [[Forbes]].com, February 22, 2011]</ref>

This policy of creating additional money to give to banks so that they lend more is highly questionable. The banks were largely responsible for the [[Great Recession]] and the increased money for banks have failed to produce the desired effect even after the Central Bank's $1.7 trillion purchase. The short term economic gains are minimal and in the long term, the central bank will lose money if the market value of the bonds drop before the bank can sell them.  If a quantitative easing policy is in place too long, it can eventually lead to higher prices and inflation or even hyper-inflation.<ref>[http://blogs.forbes.com/charleskadlec/2011/02/22/higher-inflation-is-on-the-way/ Higher [[Inflation]] Is On The Way, [[Forbes]].com, February 22, 2011]</ref>

For example, in response to a weakening [[economy]], the Federal Reserve announced on September 13, 2012 that:<ref>http://www.cnbc.com/id/49036260</ref>

For example, in response to a weakening [[economy]], the Federal Reserve announced on September 13, 2012 that:<ref>https://www.cnbc.com/id/49036260</ref>

{{cquote|The Fed initially disappointed some investors on Thursday when it said it would buy $40 billion of mortgage-backed securities each month. That is far less than the $75 billion a month it bought in its second round of bond-buying, or the more than $100 billion monthly tab for its first round.

{{cquote|The Fed initially disappointed some investors on Thursday when it said it would buy $40 billion of mortgage-backed securities each month. That is far less than the $75 billion a month it bought in its second round of bond-buying, or the more than $100 billion monthly tab for its first round.