A-level Paper 2, November 2021The National and Global Economy
A-level Paper 2, November 2021, Q7
Evaluate the effectiveness of quantitative easing during ‘a significant recession’.
EssayEvaluateOptional25 marks
Context
The European Central Bank introduced a new round of quantitative easing (QE) in March 2020, purchasing up to €750 billion of assets. The objective of this QE was to reduce the serious risks to the effectiveness of monetary policy resulting from a significant recession. The European Central Bank’s target for inflation remains at ‘below but close to 2%’.
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