As part of its monetary policy to stimulate economic growth in the post-recession years of 2010-2011
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As part of its monetary policy to stimulate economic growth in the post-recession years of 2010-2011, the Fed engaged in a series of Quantitative Easing operations. Explain what Quantitative Easing means and how it is different from other monetary policy tools. Why did the Fed have to resort to this tool? Please, research and discuss the effects of the “liquidity trap” on the effectiveness of the conventional tools of monetary policy. What are the potential long-term effects of Quantitative Easing on Long-term Inflation
