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Quantitative Easing should be used in a way that helps everyday people and contributes to a sustainable recovery.

What is quantitative easing?

Quantitative Easing is when the European Central Bank creates new electronic money and puts it into the economy.

Where does the money go?

At the moment the money created through QE goes to financial institutions like banks.

Where could it go instead?

Instead of going to the financial sector which caused the crisis, we propose to use it in a way that helps everyday people and contributes to a sustainable recovery. 

In Theory

Normally money is created by banks when they make loans but since the financial crisis they’ve been reluctant to lend. So the European Central Bank (ECB) has to create money instead. Currently the ECB is creating €60 billion per month.

The Reality

But in reality, the money gets trapped in financial markets. Share and bond prices go up and up, making the rich richer. But most people don't have many shares, so most people don't benefit. The rich don't spend more. And families and companies don't want to borrow more from banks. QE does not stimulate the real economy.

Where could the money go?

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