The launch of QE2

Last week the Fed signalled that it would launch another round of quantitative easing (QE) if the economy deteriorates in a bid to stimulate its growth. But will it work?

Western financial markets are "fixated" by the prospect of another dose of printed money in the US, says Liam Halligan in The Sunday Telegraph. Last week the Fed signalled that it would launch another round of quantitative easing (QE) if the economy deteriorates. The electronically created money is used to buy long-term bonds in the first round of QE these included Treasuries, corporate debt and mortgage-backed securities in the hope that this will cause long-term rates to fall and banks to lend, thus stimulating growth.

Will it work?

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