QEisthoughttoworkinafewways.Earlyintherecessionassetpurchaseswereprimarilyintendedtoeasecreditbydirectingafirehoseofliquidityintofearfulmarkets.Othereffectsbecamemoreimportantovertime,suchasportfoliorebalancing.AbankthathassoldbondstotheFedwilltypicallywishtospendtheproceedstobuysomeotherasset.Whenbanksbuynewsecurities,thenewlycreatedmoneyflowsthroughthesystem,raisingassetpricesandreducinginterest
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