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25 marker economics Alevel paper 2
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Chloe234
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I am struggling on how to answer this 25 marker
Evaluate the effectiveness of quantitative easing during ‘a significant recession’
I’m doing three paragraphs and a conclusion.
Evaluate the effectiveness of quantitative easing during ‘a significant recession’
I’m doing three paragraphs and a conclusion.
Last edited by Chloe234; 5 months ago
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tomftutor
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#2
(Original post by Chloe234)
I am struggling on how to answer this 25 marker
Evaluate the effectiveness of quantitative easing during ‘a significant recession’
I’m doing three paragraphs and a conclusion.
I am struggling on how to answer this 25 marker
Evaluate the effectiveness of quantitative easing during ‘a significant recession’
I’m doing three paragraphs and a conclusion.
Last edited by tomftutor; 5 months ago
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Chloe234
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#3
My against side I said that too much QE can be inflationary- this will lead to inflation
For- quantitatively easing is necessary as an additional monetary policy tool for the central bank after they have cut interest rates as possible
I spoke about Keynes liquidity trap too
For- increasing QE provides firms with additional funding to allow them to increase lending to businesses, thus increasing investment in the economy and therefore increasing economic growth
These are my points so far
For- quantitatively easing is necessary as an additional monetary policy tool for the central bank after they have cut interest rates as possible
I spoke about Keynes liquidity trap too
For- increasing QE provides firms with additional funding to allow them to increase lending to businesses, thus increasing investment in the economy and therefore increasing economic growth
These are my points so far
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Reality Check
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(Original post by Chloe234)
My against side I said that too much QE can be inflationary- this will lead to inflation
For- quantitatively easing is necessary as an additional monetary policy tool for the central bank after they have cut interest rates as possible
I spoke about Keynes liquidity trap too
For- increasing QE provides firms with additional funding to allow them to increase lending to businesses, thus increasing investment in the economy and therefore increasing economic growth
These are my points so far
My against side I said that too much QE can be inflationary- this will lead to inflation
For- quantitatively easing is necessary as an additional monetary policy tool for the central bank after they have cut interest rates as possible
I spoke about Keynes liquidity trap too
For- increasing QE provides firms with additional funding to allow them to increase lending to businesses, thus increasing investment in the economy and therefore increasing economic growth
These are my points so far
1) Your command word is 'evaluate' - i.e. assess the worth or value of. You've written your points as sides 'for' and 'against'.
2) You're asked about 'the effectiveness about QE during a significant recession'. Therefore, your point about 'too much QE being inflationary' is fairly irrelevant in this setting. Fine to mention that were QE to continue once the economy had recovered, one would expect it to be inflationary but this shouldn't be the focus of your answer.
Also, how much QE is 'too much'? The BoE has now done £895bn of QE - I think most people would consider that quite a lot...
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