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Quantitative Easing

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Quantitative easing is : an unconventional monetary policy tool that is used to expand a central bank’s balance sheet. It is often compared to printing more money, as it expands the base money supply. Money supply and inflation are linked, where a higher money supply should translate into higher inflation and lower purchasing power. The USA, Eurozone, Japan and the UK have all engaged in quantitative easing, with the Eurozone being the most aggressive.
Also, the timing of their quantitative easing programs has differed.

❗❗Therefore, you can use these policies to make trades on the forex market.

For instance, once the US started to wind down quantitative easing, the Eurozone geared up for more quantitative easing.

You could have sold EUR-USD over the long term to take advantage of this development. ❗❗

Also, the US Federal Reserve has recently indicated that further quantitative easing. may be necessary. If this materializes, then it would be a good time to short a currency pair such as USD-ZAR or USD-MYR, since South Africa and Malaysia are two fast-growing economies that have not needed to implement quantitative easing.

You can now benefit from LDN company’s services through the LDN Global Markets trading platform.

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