Assignment First

  本篇論文代寫價格-公開市場操作講了公開市場操作被國家的中央銀行用來提高或降低利率,這將最終影響國家的經濟活動。較低的利率會增加經濟活動,從而增加通貨膨脹,而較高的利率往往會產生相反的效果。它減緩了經濟活動,從而降低了通貨膨脹的壓力。本篇論文代寫價格文章由英國第一論文 Assignment First輔導網整理,供大家參考閱讀。

  Open market operations are used by the central bank of the nation to increase or lower the interest rates which will ultimately affect the economic activity of the country. Lower interest rates increase the economic activity and thus increase the inflation whereas higher interest rates tend to have opposite effect. It slows down the economic activity and thus inflationary pressure reduces.

  In Open market operations, the central banks buy or sell securities to the banks. If the central bank is buying securities from the banks, then it will be adding the credit to the bank’s balance sheet. As a result, the bank has higher liquidity and it can lend out more and thus economic activity increases. In the reverse transaction, central bank will sell securities to the banks and hence will decrease the liquidity from the system. Thus open market operation can happen in both the ways. Open market operations are normally in small value and mostly done in the short term instruments. Open market operations tend to be mostly the Fed fund rate.

  Quantitative easing is done by the central to loosen the monetary policy. It is an asset purchase program where the central bank buys securities which can be long term as well as the mortgage backed securities. This easing is done on a large scale Quantitative easing affects the total reserves of the banking system.

  Open market operations is widely used and more frequently used. However, when there are economic situations, complex central banks can turn towards the unconventional measures like quantitative easing. In the recent times, when the US rates were almost equal to zero, central bank did not have much choice related to open market operations and thus had to resort to quantitative easing.

  It is still debatable whether quantitative easing actually helps in the economic recovery as injecting the system with cash without proper direction that may not always lead to economic recovery.