Quantitative easing

[wellinghall]

Taking a leaf out of philmophlegm's book -

Can someone (maybe the estimable philmophlegm himself) explain quantitative easing to me? More specifically - how can the government both be selling gilts to the market, and buying back gilts from the market, at the same time?

Thank you!

Comments

[philmophlegm.livejournal.com]

Yeah, I looked at that - it assumes rather more knowledge about macroeconomics than most people would have and it tries to explain in too much detail. I'm glad you liked my (also slightly rambling) explanation.