What about the operations of the Federal Reserve System? In this day and age, the actual notes and coins circulating in the economy represent only a tiny portion of the money in existence. In actual fact, majority of the money supply is created by private banks as loans that are payable back to the banks…
Many of us are probably familiar with the term “Quantitative Easing” by now but what about the institution behind it? Before I dive into the system of the Federal Reserve, I would like to discuss about the history behind the Federal Reserve Act. The Federal Reserve Act was supposedly signed into law to prevent
A glance at Europe’s economy and you might tell that it isn’t exactly doing very well. The European Union (EU) recorded a trade deficit of 8900 EUR million in August 2014 compared to a trade surplus of 1600 EUR million in July 2014. At different parts of Europe, Germany industrial production has decreased, while Italy…
Roughly 3 months after the 2008 housing market crash, Chairman of the Federal Reserve then, Ben Bernanke, unveiled a stimulus programme also known as the Quantitative Easing (QE) to help stimulate the economy. According to Bernanke, the objective was to keep interest rate low so that home prices would go up. And the increase in…
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