Covid-19 Stimulus Package

[Hoop]

It actually started last week when the overnight banking settlement system had some "interesting" issues.

Yes I noticed that...

[Marilyn Munroe]

Radio New Zealand in a news bulletin described the Reserve Banks decision to buy $30 billion of government stock as "quantitative easing".

I am not an expert in this but would it be more accurate to describe the action as an open market operation designed to introduce liquidity to the market? My understanding is this is recognized as an orthodox central bank action.

Is calling this action qualitative easing an over reach by a journalist?

Boop boop de do
Marilyn

[stoploss]

Radio New Zealand in a news bulletin described the Reserve Banks decision to buy $30 billion of government stock as "quantitative easing".

I am not an expert in this but would it be more accurate to describe the action as an open market operation designed to introduce liquidity to the market? My understanding is this is recognized as an orthodox central bank action.

Is calling this action qualitative easing an over reach by a journalist?

Boop boop de do
Marilyn

I'm not sure from investopedia looks the real deal to me.
"What Is Quantitative Easing (QE)?

Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term government securities or other types of securities from the open market in order to increase the money supply and encourage lending and investment. Buying these securities adds new money to the economy, and also serves to lower interest rates by bidding up fixed-income securities. At the same time, it greatly expands the central bank's balance sheet."