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Quantitative Easing: Why is QE used to buy Government Bonds? Why not give direct to consumers?
I was wondering about quantitative easing. Specifically, why is QE used to buy government bonds instead of giving money directly to consumers?
That's a great question. The main reason why QE is used to buy government bonds is to increase the money supply and stimulate economic growth. Buying government bonds helps to inject money into the economy, which in turn can lead to increased consumer spending and investment.