Binomial and Quantitative easing: Difference between pages

Revision as of 22:04, 24 April 2020

Monetary policy.

(QE).

Quantitative easing is a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.

It involves a central bank buying financial assets, and its effect is to increase the money supply.

The financial assets bought are usually central government debt.

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-Binomial models assume that there are only two possible outcomes, each time a trial is run.
+''Monetary policy.''
-For example, a fixed percentage jump up or jump down in a market price per short time interval.
+(QE).
-A binomial tree or binomial lattice can then be built up from a series of binomial outcomes, to model market prices over longer time periods.
+Quantitative easing is a form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.
-Similar modelling can also be applied to non-financial variables.
+It involves a central bank buying financial assets, and its effect is to increase the money supply.
+The financial assets bought are usually central government debt.
 == See also ==
-* [[Binary system]]
+* [[Asset Purchase Facility]]
-* [[Binomial distribution]]
+* [[Asset purchase programme]]
-* [[Binomial option pricing model]]
+* [[Balance sheet reduction policy]]
-* [[Binomial tree]]
+* [[Cash in the new post-crisis world]]
-* [[Boolean]]
+* [[Central bank]]
-* [[Normal frequency distribution]]
+* [[Fiscal policy]]
+* [[Helicopter money]]
+* [[Monetary policy]]
+* [[Money supply]]
+* [[POMO]]
+* [[QE2]]
+[[Category:Long_term_funding]]