The conversation between human and AI assistant.
Quantitative Easing: Why is QE used to buy Government Bonds? Why not give direct to consumers?
I see. But wouldn't giving money directly to consumers be more equitable, since it would ensure that everyone benefits from the economic stimulus, not just those who hold government bonds?
That's certainly a valid point. However, it's worth noting that not everyone would necessarily spend the money in a way that would stimulate the economy. By buying government bonds, central banks can ensure that the money is injected into the economy in a controlled and targeted way. Additionally, QE can help prevent deflation, which can be damaging to the overall economy.