Question

What are the potential risks (costs) of QE?

Answer 1

One of the main risks that is associated with quantitative easing is the fact that it actually generates higher risk of inflation with the increase in the money supply I in the economy on the whole. Another major risk that it causes is that it ge to increase the provocation of taking debt because the interest rates will get lower due to increase in the money supply and this can give a threat to the economy and and with more money there can be imports happening more and finally that is realisation point that the currency reduced its value and this can get to create a humble in the international trade on and the whole