NO.PZ2022071403000080
问题如下:
Question
As a monetary policy tool, quantitative easing (QE) will most likely help revive an ailing economy in which of the following environments?
选项:
A.Deflationary trap
B.Declining bank reserves and economic activity
C.Liquidity trap
解释:
SolutionB is correct. Quantitative easing (QE) is an “unconventional” approach to monetary policy and is operationally similar to open market purchase operations but conducted on a much larger scale. The additional reserves created by central banks in a policy of quantitative easing can be used to buy any assets. The idea is that this additional reserve will kick-start lending, causing broad money growth to expand, which will eventually lead to an increase in real economic activity.
A is incorrect. Deflation is a pervasive and persistent fall in a general price index and is more difficult for conventional monetary policy to deal with than inflation. This is because once the monetary authority has cut nominal interest rates to zero to stimulate the economy, it cannot cut them any further. It is at this point that the economic conditions for a liquidity trap arise. Deflation raises the real value of debt, while the persistent fall in prices can encourage consumers to put off current consumption, leading to a fall in demand that leads to further deflationary pressure. Thus a deflationary “trap” can develop, which is characterized by weak consumption growth, falling prices, and increases in real debt levels.
C is incorrect. A liquidity trap is associated with occasions where the demand for money becomes infinitely elastic—that is, where the demand curve is horizontal and individuals are willing to hold additional money balances without any change in the interest rate—so that further injections of money into the economy will not serve to further lower interest rates or affect real activity. In this extreme circumstance, monetary policy can become completely ineffective.
QE对于流动性陷阱是无效的么?请老师讲解下每一个选项。