Ultra hair and deflation Art Iran has sent a negative case for a central bank. As of early October

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Ultra hair and deflation Art Iran has sent a negative case for a central bank. As of early October 2012, the Iranian fedit rial devaluation of more than 40%, and caught fedit the edge of the unrest in Iran. Obviously, the Central Bank of Iran "reserves" grossly inadequate. Iraq conflict loomed, President Ahmadinejad fedit crushed by the Central Bank of Iran. Iraq war is not yet open to reach the central bank of Iran's first departure. Iran, as well as capability fedit in the United States military confrontation? Perhaps, the Iranian nuclear issue has come to an end. Needless to say, the case of Iran, the significance of China. fedit QE reflect, look back to Beijing, can not help but worry about. , QE would table. 1.1, QE sense. Belong easing (English: quantitative easing, referred to as QE) of monetary fedit policy by the central fedit bank to increase the money supply through open market operations. Can be seen as "out of nothing" to create a specified amount of money, and also simplified described as directly by printing money. Operations through its open market operations, fedit the central fedit bank purchased securities and other financial assets, thus increasing the capital of the Bank in clearing the accounts of the central bank to inject new liquidity in the banking system. "Volume easing" quantitative "means a specified amount of money generated, while the" liberal "means funding pressures on banks soothing. Central bank to use the money to create the thin air to buy government bonds on the open market, the deposit-taking institutions to lend money to buy assets fedit from banks. They will lead to a decline in government bond yields and interbank overnight interest rate reduction, bank which is sitting on a large number can only earn a very low interest-bearing assets, the central bank does not expect the banks prefer to provide loans to earn a return, in order to relieve the financial market pressure. falls easing monetary policy is loose, or buy the assets of inflation and devaluation (Treasuries) lead to the devaluation of the currency trend. Belong easing could increase the risk of devaluation fedit of the currency, the government fedit launched belong easing measures commonly experienced deflation. Continued quantitative easing will increase the risk of hyperinflation. QE official definition, I have developed two questions: first, why the United States after repeated currency expansion, and deflation actually exist? Second, why the United States in the process of deflation is to maintain long-term low interest rates (rather than Chinese usury)? Author gives the answer is that the Fed's QE not only the creation of money, and also at the same time make the asset. Fed play a strong "reserve" function, the Fed manufacture of deflation Ultra gave money, the Fed can maintain low interest rates in times of deflation. 1.2, QE1 content. November 25, 2008, the Federal Reserve for the first time announced the purchase of agency debt and MBS, marks the beginning of the first round of quantitative easing policy. April 28, 2010, the first round of Fed quantitative easing policy officially ended. QE1 purchase government-sponsored enterprises (GSE), Fannie Mae, Freddie Mac, the Federal Home Loan Bank and real estate-related debt directly, and will also buy mortgage Fannie and Freddie certainty, the Federal Government National Mortgage Association (Ginnie Mae) loan-backed securities (MBS). March 18, 2009, the purchase of mortgage-backed securities in agency in 2009 to $ 1.25 trillion, agency debt purchases up to $ 200 billion. In addition, to promote the private credit market conditions improve, the Fed also decided to buy $ 300 billion of longer-term Treasury securities over the next six months, the highest. During the implementation of the first round of quantitative easing, the Fed bought a total of $ 1,725? Trillion in assets. In QE1 the main problems in the financial asset for the purchase of state guarantees, reconstruction of financial institutions credit inject liquidity in the credit market, is intended to stabilize the credit markets. The concern is that the